CAIE A-Level Economics 1.2.3 Ceteris paribus
Practise applying ceteris paribus to demand cases, explaining when price and quantity changes are affected by other variables.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- AS
Exam points
- apply ceteris paribus by holding non-price demand factors constant
- explain why demand evidence may conflict when income or tastes also change
1.2.3—Ceteris paribus question 1
[Maximum number: 1]
The price of a good rises by 5% and the quantity of it demanded rises by 3%. At the same time, the incomes of consumers of the good rise by 4%.
The law of demand appears not to be working in this case.
What is the most likely explanation?
A
Other things did not remain equal.
B
The demand for the good was price inelastic.
C
The real price of the good fell.
D
The time period was the very short run.
A
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