When economists hold factors other than the one they are analyzing constant, they are demonstrating the principle of
A) circular flow analysis
B) consumer sovereignty
C) ceteris paribus
D) normative economics
E) scarcity modification

Question

Quizplus · Accepted Answer

The principle of "ceteris paribus" means "all other things being equal" or holding other factors constant while analyzing the effect of one variable. This is a common approach in economics to isolate the impact of one factor from others.

When Economists Hold Factors Other Than the One They Are