The Ceteris paribus assumption is important when building economic models.

Name: The Ceteris paribus assumption is important when building economic models.
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

The ceteris paribus assumption, which means "all else equal", is important in economic modeling because it allows economists to isolate the effect of a particular variable on an outcome while holding all other variables constant. This helps in understanding cause and effect relationships in the economy.

The Ceteris Paribus Assumption Is Important When Building Economic Models