Consider partial and general equilibrium analysis.If a specific market is quite small relative to the entire economy
A)partial- equilibrium analysis is the only tool available to understand this market.
B)general- equilibrium analysis will be necessary in order to understand this market.
C)changes in this market will have considerable effects on other markets.
D)the feedback effects on this market from induced changes in other markets will be very small.
E)government intervention is necessary to link it to other markets.

Question

Quizplus · Accepted Answer

When a market is small relative to the entire economy, its changes have minimal impact on other markets, and feedback effects from other markets are negligible.

Consider Partial and General Equilibrium Analysis