Table of contents

Skip topic navigation

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

3. The Market Forces of Supply and Demand

Competitive Markets

Microeconomics

3. The Market Forces of Supply and Demand

Competitive Markets

Previous problem

Struggling with Microeconomics?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

The Latin phrase ceteris paribus means:

All things are known to change

Other things change equally

All things at equilibrium

Other things being equal

Previous problem

Verified step by step guidance

Understand the context in which 'ceteris paribus' is used in economics. It is a Latin phrase that means 'other things being equal' or 'holding other things constant.'

Recognize that 'ceteris paribus' is used to isolate the effect of one variable by assuming that other relevant factors remain unchanged.

In microeconomics, this concept is crucial when analyzing the relationship between two variables, such as price and quantity demanded, without interference from other variables.

Consider an example: When analyzing the effect of a price increase on the demand for a product, 'ceteris paribus' assumes that factors like consumer income and preferences remain constant.

Remember that 'ceteris paribus' is a simplifying assumption that helps economists build models and make predictions by focusing on the primary relationship of interest.