Partial equilibrium analysis
A) Concerns competitive equilibrium only in the factor markets
B) Concerns competitive equilibrium only in the product markets
C) Concerns competitive equilibrium in a single market, considered in isolation
D) Is the study of competitive equilibrium in many markets at the same time

Question

Quizplus · Accepted Answer

Partial equilibrium analysis examines the behavior of one market in isolation, assuming that all other markets remain unchanged. This means that it only concerns itself with the competitive equilibrium in a single market. It does not consider how changes in other markets might affect the one being analyzed.

Partial Equilibrium Analysis