Question

Why do economists use the ceteris paribus assumption?

Short answer

Ceteris paribus denotes "all else equivalent". Economists utilize this because they like to isolate connections between one self-dependent variable and one conditional variable.

Step-by-step solution

Concept introduction

Ceteris paribus is where all different variables live maintained equally.

Example of concept

The expense of Pepsi drops, ceteris paribus, its market will rise. Ceteris paribus indicates that different components are not considered, or are considered to stay stable.