Ceteris Paribus Meaning

Ceteris Paribus is the expression which is often found in economics textbooks; Ceteris Paribus is a Latin phrase which means “Other things being equal or constant.”  It is an underlying assumption which is used so that students and individuals learning economic concepts can better grasp the concept because in the absence of it there will too many variables which in turn would make it too complex to understand. For example while explaining law of demand Ceteris Paribus is used and law of demand states that other things being equal demand for a good rises with fall in price, now imagine if other things like income of the consumer, substitute goods and so were not kept same than it would have been very difficult to understand law of demand.

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