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Ceteris Paribus

Definition:

Ceteris paribus is a Latin phrase meaning "all other things being equal." It is commonly used in economics and other fields to outline the assumption that when analyzing the impact of a specific variable, all other relevant variables are held constant.

Senses and Usages:

1. Adverb: In the context of economic analysis, ceteris paribus is used to highlight the effect of changing one variable while assuming that all other conditions remain the same. For instance, ceteris paribus, an increase in the price of a product would result in a decrease in its demand.
2. Noun: Ceteris paribus can also be used as a noun referring to the principle or assumption of other conditions remaining unchanged. Economists often rely on ceteris paribus to simplify complex models or theories.

Sample Sentences:

• When examining the relationship between supply and demand, economists often utilize the principle of ceteris paribus to isolate the effect of price changes on market equilibrium.
• Ceteris paribus, a rise in consumer income leads to an increase in demand for luxury goods.
• The economic model predicted that, ceteris paribus, a decrease in production costs would result in higher profit margins for the company.

Related Products:

To explore further the concept of ceteris paribus and its application in economics, you may find the following related books useful:

• Principles of Economics
• Introduction to Economic Analysis
• Economic Models: Methods, Theory, and Applications