What is the meaning of the phrase ceteris paribus to an economist?

A. an assumption that nothing but the price of an item will change

B. a projection about the change in availability of a good

C. the way that economists consider the changes in demand for a good

D. a conjecture about the changes in consumer behavior

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Hillary Casey

26 December, 03:40

What is the meaning of the phrase ceteris paribus to an economist?

A. an assumption that nothing but the price of an item will change

B. a projection about the change in availability of a good

C. the way that economists consider the changes in demand for a good

D. a conjecture about the changes in consumer behavior

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Answers (1)

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Lewis Bailey · Answer 1

The meaning of the phrase ceteris paribus to an economist is: A. an assumption that nothing but the price of an item will change

If translated, ceteris paribus means "other things equal". This principle often used to predict the flow of supply and demand but it has a really huge flaw because other factors such as consumers' taste and technology development could almost never be predicted.