By using the ceteris paribus assumption in conjunction with a model, economists can
A) suspend the rationality assumption.
B) avoid having their model depend on any additional assumptions.
C) hold certain factors constant.
D) be sure that the model will predict correctly.

Question

Quizplus · Accepted Answer

By using the ceteris paribus assumption, economists can hold certain factors constant while analyzing the relationship between two variables in a model. This allows them to isolate the effect of one variable on another without being influenced by other factors.

By Using the Ceteris Paribus Assumption in Conjunction with a Model