Partial equilibrium analysis:
A)is useful for analyzing markets when changes are concentrated in one market and repercussions are almost nonexistent.
B)is useful for analyzing markets when changes occur throughout all markets equally but the impact on price and quantity varies across markets.
C)is useful for analyzing markets when changes occur in one market but repercussions are experienced largely in another market.
D)is useful for analyzing markets when a change initiated by a government policy affects most of the markets in the economy.

Question

Quizplus · Accepted Answer

Partial equilibrium analysis is useful for analyzing markets when changes are concentrated in one market and repercussions are almost nonexistent. This approach focuses on a particular market and analyzes its supply and demand conditions, assuming constant prices and quantities in other markets.

Partial Equilibrium Analysis