means that if a firm wants to increase output, it could employ more

workers, but not increase capital in the short run (it takes time to
expand.)
Also, in the short run, we can see prices and wages out of
equilibrium, e.g. a sudden rise in demand, may lead to higher
prices, but firms don’t have the capacity to respond and increase
supply.

Long run

Ceteris Paribus

This commonly-used phrase stands for ‘all other things being equal’. It
is used in economics to rule out the possibility of ‘other’ factors
changing. It means that most of the time, something will occur as a
result of something else. That is, of course, if nothing else changes.

In Economics, this concept allows you to imagine a situation where

only two variables change. You can focus on how a change in the
independent variable affects the dependent variable. For example with
the law of demand which states that ”if demand drops, ceteris paribus,
then the prices will fall to meet demand”. This informs you that there are
only two variables which are price and demand, when demand drops,
all things being equal prices too will drop.

Note: In the real world, all other things are never equal. But using the
concept of ceteris paribus allows you to understand the theoretical
relationship between cause and effect.

Decisions at the Margin