Asked by
Sydney Kimball
on Nov 06, 2024
Verified
The Latin phrase ceteris paribus means that when a relationship between two variables is being studied
A) both are treated as unpredictable.
B) neither of those two variables is allowed to change.
C) all other variables are held fixed.
D) we recognize that some factors are unknown.
Ceteris Paribus
A Latin term meaning "all other things being equal," used to isolate the effect of one variable in a economic model.
Variables
Elements, features, or factors that are liable to vary or change, often used in mathematical models or experiments to calculate outcomes or effects.
- Gain an understanding of the ceteris paribus principle and how it is applied in the context of economic modeling.
Verified Answer
IA
Learning Objectives
- Gain an understanding of the ceteris paribus principle and how it is applied in the context of economic modeling.