Economists argue that when the price of a textbook rises, students reduce their quantity demanded of textbooks. This cause-and-effect relationship holds only under conditions of
A) moderate price increases
B) market flexibility
C) complete information
D) ceteris paribus
E) consumer sovereignty

Question

Quizplus · Accepted Answer

The term "ceteris paribus" means "all other things being equal," which is essential for isolating the effect of a price change on the quantity demanded, without other factors changing at the same time.

Economists Argue That When the Price of a Textbook Rises