ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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No factors considered
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All other factors changing at the same rate
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All demand and supply being equal
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All other factors held constant
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Detailed explanation-1: -Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
Detailed explanation-2: -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-3: -What is Ceteris Paribus. Definition: This commonly-used phrase stands for ‘all other things being unchanged or constant’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused.
Detailed explanation-4: -’Ceteris paribus’ is a Latin phrase which means ‘other things being equal’ or ‘all else unchanged’.
Detailed explanation-5: -The ceteris paribus assumption The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product’s price, are changing. Economists call this assumption ceteris paribus, a Latin phrase meaning “other things being equal”.