Which of the following is true of the general equilibrium analysis?
a.It assumes that a change initiated in a market does not affect prices in other markets.
b.It determines changes in equilibrium price in a market assuming that all other markets are in equilibrium.
c.The ceteris paribus assumption is crucial in determining changes in price and quantity in general equilibrium analysis.
d.It is useful in determining price and quantity of goods and services when the markets mutually interdependent.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true of the general equilibrium analysis?
a.It assumes that a change initiated in a market does not affect prices in other markets.
b.It determines changes in equilibrium price in a market assuming that all other markets are in equilibrium.
c.The ceteris paribus assumption is crucial in determining changes in price and quantity in general equilibrium analysis.
d.It is useful in determining price and quantity of goods and services when the markets mutually interdependent.

Which of the Following Is True of the General Equilibrium