Ceteris Paribus in the Law of Demand

Steps:

• Recall the law of demand: quantity demanded inversely relates to the good's price.
• Define ceteris paribus: holds all factors constant except the good's price.
• Identify constant factors: income, prices of other goods, tastes/preferences.
• Eliminate the variable: the good's own price changes to observe demand response.

Why C is correct:

• The law of demand varies the price of the good as the independent variable to show its effect on quantity demanded, per the inverse relationship definition.

Why the others are wrong:

• A: Consumer income is held constant as it shifts the demand curve.
• B: Prices of other goods are held constant to isolate the good's price effect.
• D: Tastes of the consumer are held constant as they determine demand curve position.

Final answer: C