Asked by
Neb Farlie Saint-Cyr
on Nov 05, 2024Verified
Examining the equilibrium conditions of individual markets and for households and firms separately is referred to as
A) partial equilibrium analysis.
B) general equilibrium analysis.
C) comparative statics.
D) efficiency analysis.
Partial Equilibrium
An economic analysis that considers only a part of the market or assumes that other markets remain unaffected.
Equilibrium Conditions
The state in a market where the supply of goods matches demand, with no incentive for change in price or quantity.
- Clarify the mechanisms and outcomes linked to the analysis of general and partial equilibria.
Verified Answer
CW
Learning Objectives
- Clarify the mechanisms and outcomes linked to the analysis of general and partial equilibria.