Sally is studying the effects of a newly imposed sin tax on the demand for cigarettes. which factors are held constant when using the ceteris paribus assumption?

Respuesta :

The factors that are held constant when using the ceteris paribus assumption are:

  • All factors affecting demand for cigarettes except the new tax

What is the Ceteris Paribus assumption?

This ceteris paribus is an assumption in Economics that holds every other factor constant when trying to determine the effects of independent variables o a dependent variable.

So, when Sally is trying to understand the effects of the new sin taxon on the demand for cigarettes, all factors affecting the demand for cigarettes should be held constant.

Learn more about the ceteris paribus assumption here:

https://brainly.com/question/14569046

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