[This is part of the series: The Complete Guide To Economics 101.]
What does Ceteris Paribus mean?
Ceteris Paribus is a Latin phrase that translates: All else equal
It means that all other variables are being held constant.
“The more corn supply there is, the lower the price of corn will be, ceteris paribus.”
There are many other variables that influence the price of corn in a particular country, and those variables can make corn prices increase, despite an increasing corn supply.
However, holding all of those other variables constant “ceteris paribus,” we can say more corn leads to lower corn prices.