An economic theory claims that a rise in petrol prices will cause petrol purchases to fall,ceteris paribus.The phrase 'ceteris paribus' means that:
A) other relevant factors like consumer incomes must be held constant.
B) the petrol prices must first be adjusted for inflation.
C) the theory is widely accepted but cannot be accurately tested.
D) consumers' need for petrol remains the same regardless of the price.
Correct Answer:
Verified
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