Partial Equilibrium Analysis Differs from General Equilibrium Analysis in That

question 20

Multiple Choice

Partial equilibrium analysis differs from general equilibrium analysis in that:

• A)a partial equilibrium analysis studies the determination of price and output determination, whereas general equilibrium includes a greater number of variables.
• B)prices are not held constant in all other markets in partial equilibrium, but in general equilibrium they are.
• C)a partial equilibrium analysis studies the determination of price and output in a single market, whereas general equilibrium looks at more than one market simultaneously.
• D)a general equilibrium holds prices constant in multiple markets, whereas partial equilibrium does not.

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Definitions:

Projected Sales

The estimated amount of sales revenue a company expects to earn in a future period, based on market analysis and sales trends.