Question

"If we use "ceteris paribus" when plotting a demand curve for canned beans, all of these factors are constant except for one. Select the variable that is not constant in this scenario."
a. the price of canned beans.
b. the price of canned tomatoes.
c. the income of consumers
d. the cost of productiog of canned beans

Answer 1

Answer:

The correct answer is the option A: the price of canned beans.

Explanation:

To begin with, the term known as "ceteris paribus" in the field of economics refers to the situation where in a formula or function every variable stays the same and that means that they remain constant and just one variable is altereted, which in this case is the most important and influential variable in the equation, therefore the price is the one that does change because of the huge impact and influece it has in the function of the demand in this case. The other variables, like the income of the consumers, and the cost of the production of the canned and the price of other product does influece in the equation but not as much as the price and that is why when in "ceteris paribus" those variable are constants.