The purpose of the ceteris paribus assumption used in economic analysis is to
A) avoid making normative statements.
B) distinguish macroeconomics from microeconomics.
C) make sure that all relevant factors are considered.
D) focus on the effect of a single factor on a certain variable.

Question

Quizplus · Accepted Answer

The ceteris paribus assumption is used in economic analysis to focus on the effect of a single factor on a certain variable, while holding all other factors constant. This helps in isolating the relationship between two variables and studying its impact without interference from other factors.

The Purpose of the Ceteris Paribus Assumption Used in Economic