AP Micro & MacroCore Economic Concepts
Ceteris Paribus
Ceteris paribus is a Latin phrase meaning 'all else being equal' or 'holding all else constant'.
Ceteris paribus is an assumption used in economic analysis to isolate the effect of one variable on another while keeping all other variables constant. This allows economists to study cause-and-effect relationships in a complex world. For example, the law of demand states that, ceteris paribus, as the price of a good increases, the quantity demanded decreases.