Why do economists use the ceteris paribus assumption?

Answer 1

Ceteris paribus means "all else equal." Economists and other researchers as well, use this because they like to isolate relationships between one independent variable and one dependent variable. For example, what effect, ceterus paribus, does eating more have on your weight? In fact, much of the time other things may be going on to confound the actual result. If you eat more, but exercise a whole lot more, you may not gain weight, but all else equal, you gain. This is true with economics.

Econ. example: Ceterus paribus, the more money you earn, the more of a certain product you will buy. Makes sense, but without ceterus paribus, your tastes may change, the price of the good may change, etc. that causes you to buy less.

Answer 2

One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are essential to simplify the formulating of and making predictions under the law of supply and demand. For example, it can be predicted that if the price of beef decreases — ceteris paribus — the amount of beef that people buy will increase. The clause is necessary to separate out the effect of price decreases from an unspecified (and possibly unspecifiable) multitude of other factors that could affect how much beef is bought — for example, less beef will be sold even if the price decreases, if the prices of substitute goods such as pork or lamb decrease even more in the same period of time, or if reports come out that beef consumers are at risk of Mad Cow disease, or if millions of people suddenly become vegetarians.

In this sense, it is often loosely translated as "holding all else constant." (So, as to assume that nothing else affects the supply or demand.)

Answer 3

Ceteris Paribus Economics

Answer 4

Ceteris Paribus Means

Answer 5

maybe :
http://ww.citeseer.ist.psu-edu/436123.html