The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis.

Name: The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis.
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If the price change affects other markets,the partial-equilibrium analysis will be different than the general-equilibrium.However,the results may be smaller or larger under either analysis.

The Effects of a Price Change Are Always Understated by a Partial-Equilibrium