If it sounds Latin to you, yes it is. In English the term ceteris paribus is “other things equal”, meaning in an experiment or observation setting where the relationship between two variables or factors are studied, all others are taken as constant or unchanged.
Ceteris paribus is often used in economic studies, where analysis of cause and effect between two variables in a given situation is carried out to give a result in the absence of other variables. Though in the real world there are many factors at play to produce a given market or economic situation, ceteris paribus could at least provide a basic assumption at the lowest level.
Demand and Supply Example
For example, using one of the basic economic models, the law of demand, where the variables price and quantity of let’s say, apples, are studied, from the consumer point of view, the demand for the quantity …