Is it Possible to Relax Ceteris Paribus Assumption in Economic Models?
FEA Working Paper No. 2007-16
12 Pages Posted: 28 Jun 2007 Last revised: 5 Jan 2010
Date Written: June 25, 2007
In this essay we are concerned with how the application of multi-dimensional graphs (or Cartesian Spaces) can enable the relaxation or minimization of ceteris paribus assumption in economic models. Nonetheless, we agree that ceteris paribus assumption is necessary in 2-Dimensional and 3-Dimensional graphical methods in economic models to explain the behavior of different economic phenomenon in the real world.
Keywords: Ceteris Paribus. Economic Models, Economics teaching
JEL Classification: E20
Suggested Citation: Suggested Citation