Author Question: The statement, John buys more of good X as his income increases, Ceteris paribus, means: a. John's ... (Read 70 times)

genevieve1028 · **on:** Jun 30, 2018

The statement, John buys more of good X as his income increases, Ceteris paribus, means:
a. John's income is being held constant.
b. John's purchases of good X are being held constant.
c. John's income and purchases of this good are being held constant.
d. the price of this good is being allowed to change.

Question 2

The term Ceteris paribus means that:
a. everything is changing.
b. all other things remain unchanged.
c. no one knows which variables will change and which will remain constant.
d. the basic principle of economics do not apply to the case being considered.