A general equilibrium analysis studies the determination of price and output in more than one market simultaneously.

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General equilibrium analysis examines how the equilibrium of all markets in an economy influences the determination of prices and quantities in each of those markets. A general equilibrium analysis considers the interdependence of multiple markets and how changes in one market affect prices and outputs in other markets. It takes into account the interactions between supply and demand in various markets and the resulting equilibrium prices and quantities.

A General Equilibrium Analysis Studies the Determination of Price and Output