what is ceteris paribus

Ceteris paribus is a Latin phrase that means "all else being equal" or "other things being constant". It is a fundamental assumption in economics that helps isolate multiple independent variables affecting a dependent variable. In other words, it is used to clarify that the assumptions made about a given outcome are only valid if all other variables are remaining the same. The concept of ceteris paribus is crucial for economists and can be applied in researching supply chain, production costs, inflation, and consumer trends to conclude pricing of goods. It is also considered a natural law and is not codified by any government. The opposite of ceteris paribus is the phrase "mutatis mutandis," which states changing some factors that need to be changed. The use of ceteris paribus in economics and philosophy of economics is not of merely historiographical interest, and it is still debated today.