Question

When ceteris paribus, the demand schedule for a good:

a. indicates the quantities that suppliers will sell at various market prices.
b. indicates the quantity that people will buy regardless of the price of that good.
c. indicates the quantities that will be demanded at alternative market prices.
d. is determined primarily by the cost of producing the good.

Answer 1

The demand schedule, when ceteris paribus is assumed, shows quantities demanded at different prices, following the law of demand which states that higher prices lead to lower quantities demanded.

Step-by-step explanation:

When ceteris paribus, which is Latin for "other things being equal," is assumed, the demand schedule for a good indicates the quantities that will be demanded at alternative market prices. This means as the price changes, the quantity demanded will also change, inversely reflecting the law of demand. The demand schedule does not indicate quantities suppliers will sell, as that would be the supply schedule; it does not specify a quantity bought regardless of price; nor is it primarily determined by the cost of production, which affects supply rather than demand.

Answer 2

The demand schedule, with the ceteris paribus assumption, shows the quantities demanded at alternative market prices, following the law of demand, which indicates that higher prices generally lead to lower demand.

This correct answer c

Step-by-step explanation:

When ceteris paribus is assumed, the demand schedule for a good indicates the quantities that will be demanded at alternative market prices. The demand schedule is a tabular representation showing different quantities of a product that consumers are willing to buy at various prices.

Ceteris paribus is a Latin phrase that means 'other things being equal', which in economics refers to the assumption that all other variables except price are held constant.

The correct answer to the question is that the demand schedule indicates the quantities that will be demanded at alternative market prices. It's important to note that the demand schedule doesn't necessarily reflect the willingness to buy regardless of price, that it is not based primarily on the cost of producing the good, and it doesn't indicate what suppliers will sell.

The law of demand explains this relationship, stating that generally, a higher price will lead to a lower quantity demanded.