Refer to the information provided in Figure 12.2 below to answer the question(s) that follow. Figure 12.2
-Refer to Figure 12.2. The graph of this situation represents a partial equilibrium analysis because it
A) only shows a change in supply.
B) considers only the personal computer industry.
C) shows changes to both price and quantity.
D) only shows two possible equilibrium points.

Question

Refer to the information provided in Figure 12.2 below to answer the question(s) that follow.  Figure 12.2
-Refer to Figure 12.2. The graph of this situation represents a partial equilibrium analysis because it
A) only shows a change in supply. 
B) considers only the personal computer industry. 
C) shows changes to both price and quantity. 
D) only shows two possible equilibrium points.

Quizplus · Accepted Answer

Partial equilibrium analysis focuses on a single market or sector in isolation, without considering the interactions with other markets or the economy as a whole. In this case, considering only the personal computer industry without accounting for potential effects on or from other industries or markets is why it's a partial equilibrium analysis.

Refer to the Information Provided in Figure 12