If an Economist Is Conducting a Partial- Equilibrium Analysis of the Market

question 114

Multiple Choice

If an economist is conducting a partial- equilibrium analysis of the market for commuter jets, then he or she is

• A) assuming that changes in the prices of substitute goods will not affect the market for commuter jets.
• B) assuming that the prices of all other goods are constant.
• C) conducting an irresponsible analysis.
• D) making an equivalent analysis to a general- equilibrium analysis, but for one market only.
• E) accounting for the effects of changes in jet fuel prices in the market for commuter jets.

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Definitions:

Vertical Supply Chain

A vertical supply chain integrates multiple stages of production and distribution, managed by a single company, to control supply and costs.

Manufacturer

A company or individual that produces finished goods from raw materials in large quantities through various manufacturing processes.

Wholesaler

A person or company that sells goods in large quantities at low prices, typically to retailers or other businesses.

Distribution Center

A specialized facility that stores and ships products, serving as a key node in the supply chain between manufacturers and customers.