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Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same.
Ceteris paribus is essential for understanding the impact of a single variable on an economic outcome, as it allows economists to isolate the effect of that variable from the influence of other factors.
The term "ceteris paribus" is often used in economics to describe a situation where one determinant of supply or demand changes while all other factors affecting supply and demand remain unchanged.
Definition of ceteris paribus. Ceteris paribus is a Latin phrase meaning ‘all other things remaining equal’. The concept of ceteris paribus is important in economics because in the real world it is usually hard to isolate all the different variables.
When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. [5] For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease.
Ceteris paribus is a Latin phrase that means 'all other things being equal' or 'holding all other factors constant.' It is a crucial concept in economic analysis that allows economists to isolate the effect of one variable on another, while assuming that all other relevant factors remain unchanged.
Definition. Ceteris paribus is a Latin phrase that means "all other things being equal." Experts use it to explain the theory behind laws of economics and nature. It means that something will occur as a result of something else most of the time, if nothing else changes.