Ceteris paribus, when the price of tuition increases, fewer people will choose to go to college. What do we mean by ceteris paribus in this statement?

a. We also assume fewer students are entering high-paying college majors

b. We know that college graduates are also currently earning lower wages

c. Fewer students attend college because classes are getting more difficult

d. All of the above

e. None of the above

Question

Business

Kidd

31 May, 14:25

Ceteris paribus, when the price of tuition increases, fewer people will choose to go to college. What do we mean by ceteris paribus in this statement?

a. We also assume fewer students are entering high-paying college majors

b. We know that college graduates are also currently earning lower wages

c. Fewer students attend college because classes are getting more difficult

d. All of the above

e. None of the above

+3

Answers (1)

Know the Answer?

Aldo · Answer 1

Option "D" is most suitable answer for the question.

Explanation:

Ceteris paribus involves keeping all other variables stable. So in our situation, because we recognize that a rise in tuition fees could result in fewer people deciding to join college, we believe that other causes that we don't realize might affect fewer people choosing to join university will stay.

Therefore Option "D" is the most suitable option for the above type of problem.