"If the price of carrots drops,ceteris paribus,people will buy more carrots." What would be a way of explaining that statement?
A) The relationship between the price of carrots and the number of carrots that people buy is independent of other things.
B) If carrots are the only available goods,people will buy more of them if the price decreases.
C) If the price of carrots drops and everything else remains the same,the number of carrots people buy will increase.
D) As the price of carrots decreases,and all other prices decrease,then the quantity of carrots purchased will increase.

Question

Quizplus · Accepted Answer

Ceteris paribus means "all other things remain the same". Therefore, if the price of carrots drops and everything else remains the same, the number of carrots people buy will generally increase. This is because consumers tend to choose the cheaper good when all other factors are held constant.

"If the Price of Carrots Drops,ceteris Paribus,people Will Buy More