The ceteris paribus assumption is used in economic analyses in order to:
A)cover special cases.
B)include all relevant factors.
C)add realism.
D)keep the relationship between the two variables isolated from other events.

Question

The ceteris paribus assumption is used in economic analyses in order to:
A)​cover special cases.
B)​include all relevant factors.
C)​add realism.
D)​keep the relationship between the two variables isolated from other events.

Quizplus · Accepted Answer

The ceteris paribus assumption is used to isolate the relationship between two variables by holding all other variables constant. This allows economists to study the specific impact of a change in one variable on another, without the influence of other events or factors.

The Ceteris Paribus Assumption Is Used in Economic Analyses in Order