A partial equilibrium analysis studies the determination of price and output in a single market.

Question

Quizplus · Accepted Answer

A partial equilibrium analysis focuses on one market and does not consider the interdependence of multiple markets. It only analyzes the equilibrium price and quantity in that specific market. A partial equilibrium analysis only considers the behavior of one market and its interactions with supply and demand. It does not take into account the effects of other markets or the economy as a whole.

A Partial Equilibrium Analysis Studies the Determination of Price and Output