Question

Define or Explain the Concepts.
Partial Equilibrium Analysis.

Answer 1

Partial Equilibrium Analysis is when only a part of the maket is taken into consideration to attain equilibrium.

Micro economics studies the equilibrium position of an individual, a market using a partial equilibrium analysis which is based on the assumption "other things being constant".

Eg: Using Micro economics we can analyses Air-India workers salary hike. It would emphasize on the characteristic of workers, ability of Air India owner to pay more salary to its workers. But not its indirect effect of rise in wages on the behaviour of workers working in other industries.