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pirex pirex
wrote...
Posts: 634
6 years ago
The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis.
True or False? Provide an explanation.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 34 times
1 Reply
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Replies
wrote...
6 years ago
False. If the price change affects other markets, the partial-equilibrium analysis will be different than the general-equilibrium. However, the results may be smaller or larger under either analysis.
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