What does the ceteris paribus assumption imply?
Understand the Problem
The question is asking about the meaning of the ceteris paribus assumption, which is commonly used in economics and social sciences to indicate that all other variables are held constant when analyzing the relationship between two specific variables.
Answer
All other factors held constant to isolate one variable's effect.
The ceteris paribus assumption means that all other factors are held constant to isolate the effect of a single variable.
Answer for screen readers
The ceteris paribus assumption means that all other factors are held constant to isolate the effect of a single variable.
More Information
Ceteris paribus is crucial in economics to understand relationships between two variables without the interference of external factors.
Sources
- What Does Ceteris Paribus Mean in Economics? - Investopedia - investopedia.com
- The ceteris paribus assumption - Tutor2u - tutor2u.net
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