Asked by
Kelsey Ramsey
on Dec 08, 2024Verified
By invoking the assumption of ceteris paribus, economists
A) consider the impact of all relevant factors.
B) hold all variables constant when analyzing a model.
C) isolate the impact of one single variable while holding all other variables constant.
D) exclude irrelevant detail when analyzing a model.
Ceteris Paribus
A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding everything else constant.
Variables
Elements, features, or factors that are likely to vary or change.
Economists
Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.
- Comprehend the principle of ceteris paribus and its application in economic models.
Verified Answer
NA
Learning Objectives
- Comprehend the principle of ceteris paribus and its application in economic models.