Ceteris Paribus Holds Other Factors Constant

Steps:

• Recall that "ceteris paribus" is Latin for "all other things equal" in economics.
• In demand analysis, it isolates the effect of one variable, like price, on quantity demanded.
• This assumption prevents confounding influences from income, tastes, or prices of related goods.
• Apply to choices: identify which describes isolating one change while fixing others.

Why B is correct:

• It directly matches the definition, assuming only the variable of interest (e.g., price) changes while all others (like income or preferences) stay constant to analyze demand curves.

Why the others are wrong:

• A: Reverses causality; ceteris paribus focuses on controlled analysis, not causation in any direction.
• C: Too narrow; it holds all non-price factors constant, not just preferences.
• D: Opposite of the assumption, which prevents simultaneous changes for clarity.

Final answer: B