Ceteris Paribus Is

question 65

Multiple Choice

Ceteris paribus is:

• A) the Latin term for "all other things being the same."
• B) only necessary for the definition of the law of demand.
• C) often used by economists to isolate the effect of a multiple changes that are important.
• D) the Latin term for "as things change only consider these changes".

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Definitions:

Long Run

A period of time in economics sufficient for all markets to adjust to changes, including the production capacity of the industry.

Price Paid

The actual amount of money exchanged for acquiring a good or service.

Resource Market

A market where raw materials, services, and other inputs required to produce goods and services are bought and sold.

Shift Resources

The reallocation of resources from one use to another, often in response to changing market conditions.