The three tools used repeatedly in microeconomic analysis are:
A)unconstrained optimization, comparative equilibrium, equilibrium statics.
B)opportunity cost, scarce resources, shifting equilibrium.
C)restricted analysis, constrained equilibrium, optimization.
D)constrained optimization, equilibrium analysis, comparative statics.

Question

Quizplus · Accepted Answer

Constrained optimization is used to determine the optimal choice of a decision maker subject to specific constraints. Equilibrium analysis is used to analyze the relationship between supply and demand in a market. Comparative statics is used to observe the change in equilibrium variables when external factors like prices, income, and technology change. These three tools are used repeatedly in microeconomic analysis. The three tools used repeatedly in microeconomic analysis are constrained optimization, equilibrium analysis, and comparative statics. Constrained optimization involves maximizing or minimizing a function subject to constraints. Equilibrium analysis involves analyzing the behavior of agents in a market setting and the interaction between supply and demand. Comparative statics involves comparing the equilibrium outcome before and after a change in the relevant exogenous variable. These three tools are essential in microeconomic analysis and are used repeatedly to analyze a wide range of economic problems.

The Three Tools Used Repeatedly in Microeconomic Analysis Are