Legal Definitions - ceteris paribus

ceteris paribus

ceteris paribus means "other things being equal" in Latin. It is used to describe a situation where all other factors are held constant except for the one being studied.

• When comparing two cars, ceteris paribus, the one with better gas mileage is the better choice.
• Ceteris paribus, if the price of a product increases, the demand for it will decrease.

In the first example, ceteris paribus is used to compare two cars based on their gas mileage, assuming that all other factors such as price, size, and safety features are the same. In the second example, ceteris paribus is used to explain the relationship between price and demand, assuming that all other factors such as consumer income and availability of substitutes are constant.