Beyond the Ceteris Paribus Assumption: Modeling Demand and Supply Assuming Omnia Mobilis
International Journal of Economic Research (IJER), Vol. 5, No. 2, pp. 185-194, 2008
Posted: 24 Oct 2007 Last revised: 30 Dec 2009
Date Written: December 30, 2009
This paper is concerned with the application of multi-dimensional graphs in visualizing and modeling total change in a dependent variable in response to changes in any or all of the (many) independent variables affecting it. Previous literature has used the ceteris paribus assumption to obtain total change as a cumulative effect of the effect of the individual parts. The multi-dimensional graph applied to demand and supply shows that under the Omnia Mobilis (everything is moving) assumption, the quantity sold in the market is a joint function of all the independent variables that affect supply and demand.
Keywords: Ceteris paribus, omnia mobilis, demand and supply, multi-dimensional graphs, Econographicology
JEL Classification: B41
Suggested Citation: Suggested Citation