A Comparative Analysis of the Effectiveness of Ceteris Paribus Assumption in Economic Models

Authors(1) :-Weeraratne N.C.

In general, an economist uses Ceteris Paribus assumption to explain the law of demand. Ceteris Paribus is Latin phrase and that generally used for saying “with other things being same or all other things remaining equal”. But this assumption is not valid for every case in the law of demand. So this paper explains how to use Ceteris Paribus assumption effectively. When the pairwise correlation between contributing factors of demand (price, income, …, etc.) is comparatively low , Ceteris Paribus assumption can use to yield a substantive isolation.

Authors and Affiliations

Weeraratne N.C.
Department of Economics and Statistics, SUSL, BelihulOya, Sri Lanka

Ceteris Paribus, Correlation, Demand Function

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Publication Details

Published in : Volume 2 | Issue 4 | July-August 2016
Date of Publication : 2016-08-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 506-509
Manuscript Number : IJSRSET1624115
Publisher : Technoscience Academy

Print ISSN : 2395-1990, Online ISSN : 2394-4099

Cite This Article :

Weeraratne N.C., " A Comparative Analysis of the Effectiveness of Ceteris Paribus Assumption in Economic Models, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 2, Issue 4, pp.506-509, July-August-2016.
Journal URL : http://ijsrset.com/IJSRSET1624115

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