Business, 15.07.2019 22:30, jeffffffff
Which phrase do we use to indicate that we are trying to study the relationship between two variables while the values of all other variables are held unchanged? ceteris paribus de minimus et cetera prima facie why is this restriction so useful in economic analysis? if other variables that do not interact with these two variables are not held fixed, the true relationship between the two variables would be hidden. to fully understand the relationship between two variables, it is necessary to change each of the variables sequentially while holding the others constant. because one of the two variables might have a larger impact on a third variable than the other one being examined. if every variable is allowed to change, it would be impossible to isolate the impact of one variable on another.
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