Question

question 14 (mandatory) (3.0303 points)
when economists state that \as the price of a hotdogs increases, the quantity of hotdogs purchased decreases, ceteris paribus. the ceteris paribus assumption means that

a) both the price and quantity of hotdogs purchased are constant.

b) factors other than the price and quantity of hotdogs purchased are constant.

c) the quantity of hotdogs purchased changes a lot.

d) the price of hotdogs changes very little.

Explanation:

The ceteris paribus assumption in economics is used to isolate the relationship between two variables (here, hot dog price and quantity purchased) by holding all other influencing factors fixed. This allows economists to study how a change in one variable affects the other without interference from external factors.

Answer:

b) factors other than the price and quantity of hotdogs purchased are constant.