According to Parkin, Powell and Matthews (2008 : 15), the ceteris paribus assumption is useful to analysts because “it allows one to isolate a factor of interest and investigate its effects in the clearest possible way”. This means that one can critically think, experiment and observe one factor without the interference of other possible factors.
There are many factors that influence the demand for fresh fruit. These factors may include the price of the fruit, taste preferences of the market and the price of alternative fruits. If for example we wanted to examine the price of the fruits effect on its demand in its fullest, we need to assume that taste preferences of the market and the prices of alternative fruits are static variables.
One could then see the effect the price of the fruit has on its demand and make a more accurate conclusion.
List of references:
· PARKIN, M, POWELL, M, MATTHEW, K, 2008. Economics (7e). Essex, England: Pearson.
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