A general equilibrium analysis would be useful to study two goods that are linked in some way, such as complementary or substitutable goods.

Question

Quizplus · Accepted Answer

General equilibrium analysis is useful in studying the interaction between different markets and how changes in one market affect other markets. Complementary goods are goods that are consumed together, and their demand is interdependent. Substitutable goods are goods that can be replaced by each other to some extent. In both cases, the demand for one good affects the demand for the other good. Therefore, a general equilibrium analysis can be useful in understanding the interaction between complementary or substitutable goods. A general equilibrium analysis would help to study the interdependence and interaction between different markets, including the demand and supply of complementary or substitutable goods.

A General Equilibrium Analysis Would Be Useful to Study Two