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

Authors

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

Keywords:

Ceteris Paribus, Correlation, Demand Function

Abstract

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.

References

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2016-08-30

Issue

Volume 2, Issue 4, July-August-2016

Section

Research Articles

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How to Cite

[1]
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.