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When examining issues and developing theories, economists often make an assumption called the 'ceteris paribus' assumption. Ceteris paribus is literally the Latin for 'other things being equal'. When we make a generalistation of some sort we often want to assume that nothing else changes that will affect the outcome. For example, if the demand for a good rises, then we would expect the price to rise as well, assuming that the cost of production has not fallen as well. In this situation we say that an increase in demand will cause an increase in price ceteris paribus (all other things being equal).

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