Distinguish between:
Partial equilibrium and General equilibrium.

Open in App

Solution

Partial Equilibrium General Equilibrium
(a) Micro economics uses partial equilibrium analysis based on the assumption, other things remaining constant. (a) Macro economics uses general equilibrium. It is not based on any` assumption.
(b) Partial equilibrium studies the equilibrium of a consumer, a firm, an industry or a market. (b) It deals with the equilibrium position of the economy as a whole.
(c) It deals with one or two variables at a time. So it is a simple method. It is independent. (c) It deals with all the variables of the economic system simultaneously. So it is sophisticated. There is interdependence between variables.
(d) Partial Equilibrium is regarded as a worm's eye-view. (d) General Equilibrium is a bird's eye-view.

Suggest Corrections

Similar questions

A (s) ⇌ 2 B (g) + 3 C (g)

C

B

Join BYJU'S Learning Program

Partial Equilibrium	General Equilibrium
(a) Micro economics uses partial equilibrium analysis based on the assumption, other things remaining constant.	(a) Macro economics uses general equilibrium. It is not based on any` assumption.
(b) Partial equilibrium studies the equilibrium of a consumer, a firm, an industry or a market.	(b) It deals with the equilibrium position of the economy as a whole.
(c) It deals with one or two variables at a time. So it is a simple method. It is independent.	(c) It deals with all the variables of the economic system simultaneously. So it is sophisticated. There is interdependence between variables.
(d) Partial Equilibrium is regarded as a worm's eye-view.	(d) General Equilibrium is a bird's eye-view.