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Definition of Ceteris Paribus. Ceteris Paribus is a Latin phrase meaning âall other things remaining equalâ. The concept of ceteris paribus is important in economics because in the real world it is usually hard to isolate all the different variables.
Economic Definition of ceteris paribus. Offline Version: PDF. Term ceteris paribus Definition: A Latin term meaning that all other factors are held unchanged. The ceteris paribus assumption is used to isolate the effect one economic factor has on another.