ceteris paribus

(noun)

all else equal; holding everything else constant

Examples of ceteris paribus in the following topics:

  • Ceteris Paribus

    • Ceteris paribus is defined as "all else being equal," or "holding all else constant".
    • When the ceteris paribus assumption is employed in economics, all other variables - with the exception of the variables under evaluation - are held constant.
    • What would happen to the demand for labor by firms if a minimum wage was imposed at a level above the prevailing wage rate, ceteris paribus?
    • What would happen for the demand for a normal good when income increases, ceteris paribus?
    • Assuming an increase in his income, ceteris paribus, his demand curve would shift outward to D2, corresponding to a higher quantity for each purchase price.

  • Supply Function

    • Supply is a schedule of quantities that will be produced and offered for sale at a schedule of prices in a given time period, ceteris paribus.
    • A supply function can be viewed as the minimum prices sellers are willing to accept for given quantities of output, ceteris paribus.

  • Market Adjustment to Change

    • A schedule of quantities that individuals were willing and able to buy at a schedule of prices during a given period, ceteris paribus.
    • The maximum prices that individuals are willing and able to pay for a schedule of quantities or a good during a given time period, ceteris paribus.
    • Each individual buyer acts to maximize his or her utility, ceteris paribus.

  • Demand Function

    • The demand is usually defined as a schedule of quantities that buyers are willing and able to purchase at a schedule of prices in a given time interval (ut), ceteris paribus.
    • Demand can also be perceived as the maximum prices buyers are willing and able to pay for each unit of output, ceteris paribus.
    • Using ceteris paribus the market demand may be stated
    • When demand is stated Q = f(P) ceteris paribus, a change in the price of the good causes a "change in quantity demanded."

  • Income Elasticity of Demand

    • The income elasticity of demand (YED) measures the responsiveness of demand for a good to a change in the income of the people demanding that good, ceteris paribus.

  • The Allocation Problem

    • The economist uses the concept of ceteris paribus to deal with the problem.
    • Ceteris paribus is a Latin expression which notifies the reader that there are other things to consider but they will not be changed and remain implicit so that we can focus on the relationship described.

  • Role in Matching Savings and Investment Spending

    • The higher the level of savings, typically the lower the relative interest rate, ceteris paribus.

  • The Law of Diminishing Returns

    • The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant ("ceteris paribus"), will at some point yield lower per-unit returns .

  • Equilibrium

    • It was Marshall who introduced the concept of ceteris paribus as a means to isolate and analyze each market separately.

  • Introduction to Markets for Inputs and Distribution of Income

    • The demand function is a schedule of the maximum price (reservation price) that buyers are willing and able to pay for a schedule of quantities of a good in a given period of time (ut), ceteris paribus.