Question: To study the effect of price on Brett's demand for rock climbing lessons, we hold his monthly income constant. This is an example of a(n) _______ assumption.
a) e pluribus unum
b) ceteris paribus
c) carpe diem
d) carpe vinum
Answer:
To study the effect of price on Brett's demand for rock climbing lessons, we hold his monthly income constant. This is an example of a "ceteris paribus" assumption
Step-by-step explanation:
The term is used in order to describe the phrase "all other things remaining constant". The concept is significant as in the real life it is difficult to separate variables which also effects and change the result of what we are reviewing. Example of these is the Law of the Gravity which says about the bathroom scale thrown out the window will fall to the ground.