Question

in this age of instantaneous communication (due to the proliferation and communication technologies) is the "fundamental",law of economics in need of being reworked. if so, why? if not, why not? (more than 350 words)

Answer 1

The most important assumptions that apply to economic theory are the parochial assumptions or anything else that remains unchanged.

The purpose of this assumption is to obtain a clearer result from another alternative theory.

A hypothesis is rejected if it is not correctly predicted and the null hypothesis needs to be revised.

The idea of ?? ceteris paribus is to find relationships between variables after defining the variables of interest with the assumption that everything else remains unchanged.

For example, to find out how Pepsi’s price affects the amount of money it buys, assumptions are made to customers ’income, the value of the replacement cartridge remains unchanged.

Here, the relative variables are price and quantity, so these variables are important for theorizing.

The prediction turned out to be correct when Ceteris paribus was taken. Therefore, the basic rules of economics do not need to be re-enforced.

Cateris Peribus assumptions help transform the social science that can be withdrawn into a positive science. It creates an imaginative system of laws and conditions in which economists can pursue a specific goal. Put another way; It helps economists to avoid human nature and problems of limited knowledge.

Most, but not all, economists rely on the paribus to build and test economic models. In simple terms, this means that economists can keep all variables in a fixed pattern and think about it one by one. Ceteris paribus has its limitations, especially when such arguments are placed on top of each other. However, it is an important and useful way of describing the relative trends of the market.
Example of Ceteris Paribus

Suppose you want to explain the price of milk. With a little thought, it became apparent that milk prices were influenced by many things: the availability of their cows, the health of their cattle, the cost of feeding the cows, the amount of land available, the cost Original of possible milk replacements, number of milk suppliers and more. The level of inflation in the economy, consumer preferences, transport and many other variables. Therefore, another economist applies to the potato tuber, which is necessary to say that if all factors remain the same, a decrease in the supply of milk producing milk leads to an increase in the price of milk.

Take the rules of supply and supply as another example. According to economists, the demand shows that with ceteris paribus (all others being equal), more goods are bought at lower prices. Or if product demand exceeds supply, ceteris paribus prices are likely to rise.