1.1.1 social science

• ceteris parabus is when apart from the factor studied all other things are being held equal or constant
• What does the "ceteris paribus" assumption mean?

  It means "holding other things constant" or "all other things being equal."
• Why is the ceteris paribus assumption used in economics?

  It is used to isolate the effect of a specific variable while keeping other relevant factors constant.
• How does the ceteris paribus assumption help economists?

  It allows economists to analyze the relationship between variables without complications from other influencing factors.
• What is an example of the ceteris paribus assumption in the law of demand?

  • When the price of a good decreases, the quantity demanded increases.
  • When the price increases, the quantity demanded decreases.
  • Assumes factors like income and preferences remain constant.
• What does the ceteris paribus assumption imply in the context of supply and price?

  It assumes that other factors affecting supply are held constant to analyze the relationship between market price and quantity supplied.
• How is ceteris paribus applied when discussing marginal utility?

  It assumes that the consumer's preferences, income, and prices of other goods remain constant while analyzing the impact of consuming an additional unit.
• When might economists drop the ceteris paribus assumption?

  • When analyzing how multiple variables interact simultaneously.
  • In behavioral economics to capture the nuances of human behavior.
• What is a limitation of the ceteris paribus assumption?

  It is often challenging to hold all other factors constant since many economic variables are interconnected.