The ceteris paribus assumption:
A) means that other economic and business conditions are held constant.
B) is not a critical component of economic thinking.
C) was used by ancient Greeks in trade.
D) is Latin for "go forth and conquer."

Question

Quizplus · Accepted Answer

The ceteris paribus assumption is a fundamental concept in economics that means "all other things being equal" or that other variables are held constant while examining the effect of a single variable change. This allows economists to isolate the effects of one variable at a time.

The Ceteris Paribus Assumption