The basic purpose of the ceteris paribus assumption is to:
A)isolate the relationship between two variables by assuming all other factors remain constant
B)allow one to focus upon micro variables by ignoring macro variables
C)allow one to focus upon macro variables by ignoring micro variables
D)determine whether x causes y or vice versa
E)determine whether two variables are directly or inversely related

Question

Quizplus · Accepted Answer

The ceteris paribus assumption is used to isolate the relationship between two variables by assuming that all other factors remain constant. This allows for a more accurate analysis of the relationship between the two variables, as other factors that could potentially affect the relationship are not changing.

The Basic Purpose of the Ceteris Paribus Assumption Is To