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MrGrimey MrGrimey
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Posts: 336
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6 years ago
The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
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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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