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Economics vocabulary · Core Concepts

Ceteris paribus

Meaning in economics, with examples

phraseAdvanced term

In economics, ceteris paribus means: A Latin phrase meaning with other things the same, used when economists study the effect of one change while assuming that everything else stays constant.

In Turkish: ceteris paribus, diğer her şey sabitken, diğer koşullar aynı kalmak kaydıyla

How it is used

Common in textbooks, lectures and exams, usually written in italics. For example, the law of demand says that, ceteris paribus, a higher price reduces the quantity demanded. In plain English people say all else being equal or other things being equal.

Example sentences

  1. Ceteris paribus, a rise in income increases the demand for normal goods.

  2. The model holds ceteris paribus, but in real life prices and incomes change at the same time.

Common collocations

  • the ceteris paribus assumption
  • all else being equal
  • other things being equal
  • demandThe amount of a good or service that buyers are willing and able to purchase at each possible price during a given period.
  • supplyThe amount of a good or service that producers are willing and able to sell at each possible price during a given period.
  • microeconomicsThe branch of economics that studies how individual households and firms make choices, and how prices are set in particular markets.
  • equilibriumA situation in which supply and demand are equal, so there is no pressure for the price or the quantity to change.

More terms: Core Concepts

Practise with graded reading

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This page explains English vocabulary for learners. It is not financial advice.