Any market that we are studying and the markets for the related inputs must all be in equilibrium at the same time.This leads to:
A) simultaneous equilibrium effects.
B) partial equilibrium effects.
C) general equilibrium effects.
D) equilibrium-induced changes.

Question

Quizplus · Accepted Answer

The statement refers to the concept of general equilibrium, where all markets are interconnected and affect each other simultaneously. In general equilibrium analysis, the focus is on understanding the interactions between markets and how changes in one market affect others, to achieve a state of balance where demand equals supply in all markets. Thus, option C, general equilibrium effects, is the correct choice. The other options do not accurately describe the concept of equilibrium in economics.

Any Market That We Are Studying and the Markets for the Related