C?ter?s paribus is a Latin phrase, literally translated as "with other things the same." It is commonly rendered in English as "all other things being equal."
In economics, theoretical models are build on the basis of ceteris paribus in order to test and illlustrate various theories.
When using ceteris paribus in economics, assume all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef decreases—ceteris paribus—the quantity of beef demanded by buyers will increase. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
