What concept do economists rely on to isolate the effect of a single change in the economy?

The concept that economists use to isolate the effect of a single change in the economy is ceteris paribus, which is a Latin phrase meaning "all other things being equal." This principle allows economists to focus on the relationship between two variables, while assuming that all other relevant factors remain constant. By using ceteris paribus, economists can analyze how a change in one economic variable—such as price—affects another variable, like quantity demanded or supplied, without the interference of other changing variables.

For example, when examining the impact of a price increase on the demand for a product, economists apply ceteris paribus to ignore other factors that could also affect demand, such as consumer income or preferences. By holding these other factors constant, it provides a clearer understanding of direct causal relationships.

When considering the other options, market equilibrium refers to the point where supply and demand meet but does not specifically focus on isolating individual changes. Diminishing returns is a principle related to production and output but does not pertain to isolating changes in the economy. Aggregate demand represents the total demand for goods and services in an economy at a given overall price level and does not serve the purpose of isolating the effects of single changes. Thus, the