Economic models often simplify the real world by holding all things equal and changing one variable to determine the impact of the change. The "all things equal" assumption is also known as ceteries paribus.
An economic model is a simplified version of reality that lets us to look at, recognize, and make predictions about economic behavior. The purpose of a model is to take a complex, real-global situation and pare it down to the essentials.
An economic model is a simplified description of reality, designed to yield hypotheses about economic behavior that can be tested. A critical characteristic of an economic model is that it's far always subjective in layout due to the fact there are no goal measures of financial consequences.
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