ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Ceteris paribus is a Latin phrase that means “all other things being equal.” Experts use it to explain the theory behind laws of economics and nature. It means that something will occur as a result of something else most of the time, if nothing else changes.

Detailed explanation-2: -’Ceteris paribus’ is a Latin phrase which means ‘other things being equal’ or ‘all else unchanged’.

Detailed explanation-3: -The ceteris paribus assumption is a Latin phrase that means “other things being equal.” It is used in economics to refer to the assumption that all other factors are held constant in order to isolate the effect of a single variable on an economic outcome.

Detailed explanation-4: -Answer and Explanation: The correct answer is d. If we decrease the price of a good and observe that there is an increase in the quantity demanded, holding all other factors that influence this relationship constant.

Detailed explanation-5: -Etymology. From economy, from Latin oeconomia, from Ancient Greek (oikonomía, “the study of the needs”)