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Ceteris Paribus for Dummies

pronunciation: 'keɪtɛ,Ris_'pɑRɪ,bʊs

What does Ceteris Paribus really mean?

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Hey there! So, the word "Ceteris Paribus" is actually a Latin phrase that is often used in economics and other social sciences. Imagine you are baking a cake, and you're following a recipe. Now, let's say you want to test how different types of flour affect the taste of the cake. But you also want to make sure that everything else, like the amount of sugar, eggs, and butter, stays the same. That's kind of the idea behind "Ceteris Paribus." It means "all other things being equal" or "holding everything else constant." When we use "Ceteris Paribus," it's like putting a little bookmark in our minds. We're saying, "Okay, let's focus on this one thing and ignore everything else for now." It helps us isolate the effect of a specific variable, like the type of flour in our cake example, without getting distracted by other factors that might also influence the outcome. It's a really handy tool for understanding cause-and-effect relationships in the real world.

So, in simpler terms, "Ceteris Paribus" means taking one specific thing and saying, "Let's just look at this one thing and assume that everything else stays the same." It's like putting blinders on a horse so it can focus on running straight ahead without getting sidetracked by what's happening on the sides. It's a way to simplify complex situations and make them easier to understand. And in the world of economics and social sciences, it's a super important concept for making sense of how different factors influence each other. Cool, right?


Revised and Fact checked by Daniel Clark on 2023-11-13 20:49:43

Ceteris Paribus In a sentece

Learn how to use Ceteris Paribus inside a sentece

  • Ceteris Paribus, if the price of rice increases, the quantity demanded will decrease.
  • Ceteris Paribus, if the temperature rises, the demand for ice cream will increase.
  • Ceteris Paribus, if the income of consumers decreases, the demand for luxury cars will decrease.
  • Ceteris Paribus, if the price of laptops decreases, the demand for desktop computers will decrease.
  • Ceteris Paribus, if the price of movie tickets increases, the demand for popcorn at the movie theater will decrease.