Question

The importance of the ceteris paribus assumption is that it:______.

a. allows one to generalize from the whole to the individual.
b. allows one to analyze the relationship between two variables apart from the influence of other variables.

Answer 1

b. allows one to analyze the relationship between two variables apart from the influence of other variables.

Step-by-step explanation:

Ceteris Paribus means 'other things being constant'.

This implies study of relationship between two variables, other factors being constant.

Example : Law of demand states negative relationship between price & quantity demanded, other factors being constant.