An analysis that determines the equilibrium prices and quantities in more than one market simultaneously is called
A) partial equilibrium analysis
B) general equilibrium analysis
C) externality analysis
D) market equilibrium analysis

Question

Quizplus · Accepted Answer

General equilibrium analysis takes into account multiple markets and how they interact with each other to determine the overall equilibrium prices and quantities. Partial equilibrium analysis only considers one market, externality analysis focuses on the impact of external factors on a single market, and market equilibrium analysis is a more general term that can refer to either partial or general equilibrium analysis.

An Analysis That Determines the Equilibrium Prices and Quantities in More