Partial equilibrium is
A) exactly like general equilibrium.
B) studying only the supply side of the market.
C) studying individual markets.
D) examining the demand side of the market.

Question

Quizplus · Accepted Answer

Partial equilibrium refers to the analysis of individual market units and their interactions. It focuses on a specific market and considers the factors that affect its supply and demand. On the other hand, general equilibrium analysis looks at the overall economy as a whole, by analyzing multiple markets and how they interact with each other. Thus, option C is the most appropriate answer as it correctly defines partial equilibrium.

Partial Equilibrium Is