Business, Legal & Accounting Glossary
Ceteris paribus is a Latin expression which loosely means “holding other things constant”. Mostly used in economics, this phrase is used by economic analysts to denote the effect of one economic change on another when all other variables, which may affect the latter, remain constant. The use of this phrase in economics is done for simplification of the formulation and description of economic changes and results.
For example, if the price of beef rises, ceteris paribus, sales of beef will fall. The second variable can be affected by various other factors. However, the use of the phrase ceteris paribus takes these factors as constant.
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This glossary post was last updated: 30th March, 2020 | 4 Views.