Question

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called _______.

Answer 1

Answer:

Ceteris Paribus

Explanation:

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called Ceteris Paribus.

Ceteris Paribus is a Latin phrase that means "all other things being equal" or "all other things held constant" in English. The phrase has found application in disciplines like Economics and Statistics. This phrase as being adopted as a process of examining a change in one variable in a model while assuming that all the other variables remain constant to ascertain the relationship between the variables or make deductions from an experimental study. An example of Ceteris Paribus application is the law of demand and supply in Economics. The law of demand states, Ceteris Paribus, the higher the price, the lower the quantity demanded and vice versa. Conversely, the law of supply states, Ceteris Paribus, the higher price, the higher the quantity supply and vice versa.