Homework SourseAn example of ceteris peribus is best described by the state
An example of ceteris peribus is best described by the statement ______
A. Study how cinema ticket prices influence revenue, assume the movie wins best picture award
B. Study the effect of wage rise on number of employees, keep only the population constant
C. To find the effect of the increase in capital, increee the number of workers
D. Study the effect of the rise in oil price, keep all other prices constant
An example of ceteris peribus is best described by the statement ______
A. Study how cinema ticket prices influence revenue, assume the movie wins best picture award
B. Study the effect of wage rise on number of employees, keep only the population constant
C. To find the effect of the increase in capital, increee the number of workers
D. Study the effect of the rise in oil price, keep all other prices constant
An example of ceteris peribus is best described by the statement ______
A. Study how cinema ticket prices influence revenue, assume the movie wins best picture award
B. Study the effect of wage rise on number of employees, keep only the population constant
C. To find the effect of the increase in capital, increee the number of workers
D. Study the effect of the rise in oil price, keep all other prices constant
An example of ceteris peribus is best described by the statement ______
A. Study how cinema ticket prices influence revenue, assume the movie wins best picture award
B. Study the effect of wage rise on number of employees, keep only the population constant
C. To find the effect of the increase in capital, increee the number of workers
D. Study the effect of the rise in oil price, keep all other prices constant
An example of ceteris peribus is best described by the statement ______
A. Study how cinema ticket prices influence revenue, assume the movie wins best picture award
B. Study the effect of wage rise on number of employees, keep only the population constant
C. To find the effect of the increase in capital, increee the number of workers
D. Study the effect of the rise in oil price, keep all other prices constant
A. Study how cinema ticket prices influence revenue, assume the movie wins best picture award
B. Study the effect of wage rise on number of employees, keep only the population constant
C. To find the effect of the increase in capital, increee the number of workers
D. Study the effect of the rise in oil price, keep all other prices constant
Solution
We need to keep all other factors that affect a particular variable constant or unchanged when we study the effect of one single factor on this variable. This is the underlying principle of ceteris peribus. Now among all the options, Option D is the one that keeps all other prices constant and studies the effect of a rise in oil price. Hence option D makes a valid assumption for ceteris peribus.
Option D is correct
