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Ceteris paribus is a Latin phrase commonly used in economics and other social sciences, translating literally to “all other things being equal” or “holding other things constant.”
It serves as an assumption that allows analysts to isolate the effect of one variable on another by assuming that no other factors change.
For example, in economics, one might say that an increase in price leads to a decrease in demand, ceteris paribus, meaning assuming factors like consumer income and preferences remain unchanged.
This concept helps simplify complex real-world scenarios for theoretical modeling and hypothesis testing.