why-is-the-ceteris-paribus-assumption-important-when-analyzing-the-effect-of-a-s

Question

Why is the ceteris paribus assumption important when analyzing the effect of a single determinant on demand?

Accepted Answer

It isolates the effect of one variable by holding others constant.

Answer

It assumes that price is the only variable that can change.

Answer

It allows all variables to change simultaneously.

Answer

It assumes that only consumer preferences can change.