Asked by
Diana Davila
on Nov 11, 2024
Verified
The ceteris paribus assumption is a behavioral assumption.
Ceteris Paribus Assumption
The assumption used in economics that all other variables are held constant when analyzing the effect of one variable on another.
Behavioral Assumption
An assumption that describes the expected behavior of economic decision makers, what motivates them.
- Recognize the significance of the ceteris paribus assumption in economic theories.
Verified Answer
CR
Learning Objectives
- Recognize the significance of the ceteris paribus assumption in economic theories.