Final answer:
Ceteris Paribus refers to the assumption that all other relevant factors or variables are held constant in economic models.
Step-by-step explanation:
The term Ceteris Paribus, when used in economic models, refers to the assumption that all other relevant factors or variables are held constant while analyzing the relationship between two variables, such as quantity and price. It allows economists to isolate the effect of a specific variable in on the relationship being studied.
For example, when examining the demand or supply curve, the ceteris paribus assumption assumes that factors other than price, such as income or population, remain unchanged.