When Economists Use the Term Ceteris Paribus , They Are

question 24

Multiple Choice

When economists use the term Ceteris paribus , they are indicating that:

• A) the relationship between two economic variables cannot be determined.
• B) the analysis is true for the individual but not for the economy as a whole.
• C) all other variables except the ones specified are assumed to be constant.
• D) their conclusions are based on normative economics rather than positive economic analysis.

---

Definitions:

Leftward Shift

In economic terms, a movement of the supply or demand curve to the left on a graph, indicating a decrease in supply or demand.

Demand Curve

A demand curve is a graphical representation that shows the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.

Substitute Good

Refers to a product or service that a consumer sees as the same or similar to another product, thus they can be used interchangeably.

Substitute Goods

Products or services that can be used in place of each other, where the consumption of one increases the likelihood of the other being consumed less.