General 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

General equilibrium analysis is the study of competitive equilibrium in many markets at the same time, where the prices and quantities of all goods and services are interdependent and determined simultaneously. It takes into account the interactions between all the markets in an economy and how changes in one market affect the equilibrium outcomes in other markets.

General Equilibrium Analysis