Ceteris Paribus in the Law of Demand

Steps:

• Identify the statement: It describes the inverse price-demand relationship, a core part of the law of demand.
• Recall "ceteris paribus" means "all other things equal," isolating price's effect on demand.
• Evaluate choices: Match each to the definition of holding non-price factors constant.
• Select A: It directly defines ceteris paribus as constancy of other demand influencers.

Why A is correct:

• Ceteris paribus assumes non-price factors (like income, tastes) remain constant, per the law of demand, to show price's isolated impact.

Why the others are wrong:

• B: Focuses on price determinants, not demand; irrelevant to ceteris paribus in demand analysis.
• C: Reverses causation; demand changes affect price via supply, not the demand curve itself.
• D: Describes a movement along the demand curve, not the ceteris paribus assumption.

Final answer: A