Examining the equilibrium conditions of individual markets and for households and firms separately is referred to as
A) partial equilibrium analysis.
B) general equilibrium analysis.
C) comparative statics.
D) efficiency analysis.

Question

Quizplus · Accepted Answer

Partial equilibrium analysis focuses on the equilibrium in a single market or for a single entity (like a household or firm) in isolation, without considering the interactions with other markets or sectors.

Examining the Equilibrium Conditions of Individual Markets and for Households