Ceteris Paribus Meaning

Ceteris Paribus is the expression which is often found in economics textbooks; Ceteris Paribus is a Latin phrase which means “Other things being equal or constant.”  It is an underlying assumption which is used so that students and individuals learning economic concepts can better grasp the concept because in the absence of it there will too many variables which in turn would make it too complex to understand. For example while explaining law of demand Ceteris Paribus is used and law of demand states that other things being equal demand for a good rises with fall in price, now imagine if other things like income of the consumer, substitute goods and so were not kept same than it would have been very difficult to understand law of demand.

0 comments… add one

Leave a Comment


Related pages


the downside of globalizationdiminishing marginal utility exampleadvantages and disadvantages of social media advertisingimplications of capmdifference between mixed economy and capitalismlong form of micrfictitious assetsdisadvantages of commodity exchangemerits of advertisementdefine foreign exchange reservesmsf full formnasdaq fullformadvantages federalismadvantages and disadvantages of debit cardsassumption of capmwhy does the government intervene in a mixed economywhat are the disadvantages of capitalismcost oriented pricing strategywhat are the characteristics of traditional economymarket segmentation advantagesentry of prepaid expensesadvantages of debenturefree market economy advantages and disadvantagesexample of market skimming pricingsubstitute and complement goodsunearned rent revenue balance sheetwhat is promissory note and bill of exchangeagro based industries definitiondisadvantages of decentralised structurefull form of tallydisadvantages sales promotionexamples of penetration pricingwhy do companies do a reverse stock splitdeclining balance method of depreciationcheque vs draftdisadvantages of competitive pricingpenetration pricing strategyfictitious assets examplesan example of diminishing marginal utilitylocational arbitragedisadvantages of economic globalizationforeign trade advantages and disadvantagescash reserve ratio calculationentry for unearned revenuedisadvantages of comparative advantage theorybills receivable accounting entriesmarket economy advantages and disadvantagesadvantages and disadvantages of invoice discountingfluctuating exchange ratedirect quote vs indirect quotehorizontal analysis financial statementsexample of horizontal mergeradvantages and disadvantages of industrial agricultureformula for profitability ratiowhat is inferior goods in economicsmonopolistic firms examplesskimming strategiesmicr fullformdefinition of retail bankipo fullformadvantages of foreign exchange reservesjournal entry of bad debtsdifferentiate between direct and indirect taxeswhat is barter system with exampleadvantages and disadvantages of global tradewhat is durable and nondurable goodsleadership styles advantages and disadvantagesthe merits and demerits of internetdirect and indirect currency quotesincome effect and substitution effect of a price changeassumptions of break even analysis accountingjournal entry of loan taken from bankcommodity swapfunctions of regional rural banksaccounting materiality principle