Answers

2016-06-21T21:17:11+08:00

Ceteris paribus, a Latin phrase, roughly means “holding other things constant.” The more common English translation reads “all other things being equal.” This term is most widely used in economics and finance as a shorthand indication of the effect of one economic variable on another, keeping all other variables constant that could render an effect on the second variable.

For an example, consider the laws of supply and demand. It could be said that if demand for any given product is outweighed by the product’s supply, ceteris paribus, prices will likely rise. The use of the Latin phrase in this example simply indicates if all additional factors that could affect the outcome, such as the presence of a substitution, remain the same, prices will generally increase.




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