[key-te-rees pah-ri-boo
s; Eng. set-er-is par-uh-buhs] 
| other things being equal. |
| ce·ter·is par·i·bus (kā'tər-ĭs pār'ə-bəs) adv. Abbr. cet. par. With all other factors or things remaining the same. [New Latin cēterīs pāribus, with other things equal : Latin cēterīs, ablative pl. of cēterus, the other, the rest + Latin pāribus, ablative pl. of pār, equal.] |
Ceteris Paribus
Latin phrase that translates approximately to "holding other things constant" and is usually rendered in English as "all other things being equal". In economics and finance, the term is used as a shorthand for indicating the effect of one economic variable on another, holding constant all other variables that may affect the second variable.
Investopedia Commentary
For example, when discussing the laws of supply and demand, one could say that if demand for a given product outweighs supply, ceteris paribus, prices will rise. Here, the use of "ceteris paribus" is simply saying that as long as all other factors that could affect the outcome (such as the existence of a substitute product) remain constant, prices will increase in this situation. Contrasts with "mutatis mutandis".
Related Links
Economics Basics Tutorial
Macroeconomic Analysis
Understanding Supply-Side Economics
See also: Demand, Economics, Equilibrium, Law of Demand, Law of Supply, Supply
Also spelled: other things being equal