The "other things equal" assumption is employed when
A) the graph of a given relationship is shifting up or down.
B) economists draw a two-dimensional (or two-axes) graph.
C) the relationship is direct, but not when it is inverse.
D) the relationship is inverse, but not when it is direct.

Question

Quizplus · Accepted Answer

The "other things equal" assumption, also known as ceteris paribus, is used in economics to isolate the effect of one variable by holding other influencing factors constant. This is often applied when economists use two-dimensional graphs to analyze the relationship between two variables, ensuring that other variables do not interfere with the analysis.

The "Other Things Equal" Assumption Is Employed When