An analysis in which the economist examines the path that the market will follow in moving from one equilibrium to another is known as dynamic analysis.

Question

Quizplus · Accepted Answer

A dynamic analysis focuses on the processes and mechanisms that lead a market from one equilibrium to another, taking into account changes in demand and supply factors over time. It involves a study of how market forces interact, adjust and adapt to new conditions, and the resulting impact on prices, quantities, and market outcomes. Therefore, the statement is true.

An Analysis in Which the Economist Examines the Path That