True or False ceteris paribus is an assumption used in econo

True or False

ceteris paribus is an assumption used in economic models where the important variables that you are focusing on are kept constant.

Solution

False

Ceteris paribus is an assumption used in economic models where the variables other than the important one are kept constant. For example, when we see the impact of price on quantity demanded, we keep the variables other than price like tatste and income are kept constant.