Asked by Dustin Hansen on Jun 13, 2024
Verified
Partial equilibrium analysis concerns only supply or only demand while general equilibrium analysis deals with supply and demand at the same time.
Partial Equilibrium Analysis
An economic analysis that considers the equilibrium in a single market or industry without taking into account the effects from other markets or industries.
General Equilibrium
An economic state where supply and demand are balanced across all markets in the economy simultaneously.
- Distinguish between partial equilibrium analysis and general equilibrium analysis.
Verified Answer
NU
Nashea UniqueJun 19, 2024
Final Answer :
False
Explanation :
Partial equilibrium analysis only looks at one side of the market, either supply or demand, while general equilibrium analysis takes into account both supply and demand and how they interact with each other in the overall economy.
Learning Objectives
- Distinguish between partial equilibrium analysis and general equilibrium analysis.
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