AS Paper 1, June 2024Introduction to Markets and Market Failure
AS Paper 1, June 2024, Q5(b)
Define the term ‘ceteris paribus’.
Short answerDefine1 mark
Context
Chief Executive Elon Musk said “affordability” was the biggest barrier to Tesla reaching a far larger market. Before recent price cuts for its electric vehicles, he said, “We weren’t sure about what the price elasticity of demand was for Tesla. We found that even small changes in price have a big impact on demand.”