Final answer:
The ceteris paribus assumption is used by economists to analyze the impact of specific factors on outcomes, by assuming that all other factors remain constant. Marshall used this assumption to understand the impact of economic events on different markets in his analysis of society.
Step-by-step explanation:
The ceteris paribus assumption is a concept used by economists, including Marshall, in their analysis of society. It refers to the assumption that all other factors or variables remain constant while analyzing the impact of a specific factor on a particular outcome. By holding other factors constant, economists can isolate the effects of the factor they are studying and understand its relationship with the outcome.
In Marshall's analysis of society, the ceteris paribus assumption played a crucial role in understanding the impact of various economic events on different markets. It allowed economists to examine each event separately, without the interference of other variables, and then combine the analyses to determine the overall net effect. This helped in sorting out the interconnected events and gaining a clearer understanding of the complex dynamics of the economy.