C.p.t >>economics>>demand

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2013 "ceteris paribus" clause in the law of demand does not mean:
a)the price of the commodity does not change
b)the income of the consumer does not change
c)the price of the complimentary goods does not change
d)the price if its substitutes does not change
.
.
.
its really a bit confusing for me!
can anyone clear me out of this!
thank you!

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 October 2013 a) the price of the commodity does not change.

Ceteris paribus means "everything else held constant"

In law of demand, we study the impact of change in price over the demand of the commodity. Hence option a.

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2013 yes..
i got it!
thank you!

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