Holding all variables constant but one and assessing the impact of the one variable that has changed is an example of using
A) the ceteris paribus assumption.
B) an economic model based on unrealistic assumptions.
C) a flawed economic model.
D) an untestable proposition.

Question

Quizplus · Accepted Answer

Holding all variables constant but one in order to assess the impact of the one variable that has changed is an example of using the ceteris paribus assumption in economics. This assumption is often used in economic analysis to isolate and examine the effects of different factors on a particular economic outcome.

Holding All Variables Constant but One and Assessing the Impact