If Two or More Markets Are Closely Related

question 33

Multiple Choice

If two or more markets are closely related,

• A) a partial equilibrium analysis will tend to overstate the price impact of a supply shock.
• B) a partial equilibrium analysis will tend to accurately predict the price impact of a supply shock.
• C) a partial equilibrium analysis will tend to understate the price impact of a supply shock.
• D) they should be analyzed concurrently but using partial equilibrium analysis alone.

---

Definitions:

Plasma Membrane

A semipermeable lipid bilayer that surrounds the cytoplasm of cells, controlling the movement of substances in and out of the cell.

Membrane Potential

A difference in electric charge between the two sides of a membrane.

Membranes

Thin layers of tissue that cover surfaces, lines cavities, and separates or connects spaces or organs in a living organism.

Compartments

Distinct sections within spaces or structures, typically used to separate or organize different functions or components.