Partial equilibrium analysis - Revision history

Vipul: /* Definition */

2011-08-30T07:39:46Z

Definition

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	'''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular [[good]], the equilibrium price (the [[market price]]), and whether and how quickly the price converges to this market price, ''[[ceteris paribus]]'' all other things in the economy (in particular, the prices and quantities demanded and supplied of other commodities, the incomes and wealth of the buyers and sellers, etc.).		'''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular [[good]], the equilibrium price (the [[market price]]), and whether and how quickly the price converges to this market price, ''[[ceteris paribus]]'' all other things in the economy (in particular, the prices and quantities demanded and supplied of other commodities, the incomes and wealth of the buyers and sellers, etc.).

			Most of the standard and elementary analyses in [[microeconomics]], including the [[law of demand]], [[law of supply]], and [[convergence towards market price]], are performed using partial equilibrium analysis.

	This is in contrast to [[general equilibrium analysis]], which studies (in a simplistic model of [[perfect information]], zero [[transaction cost]]s, and [[rational behavior]]) the simultaneous interaction of prices and quantity demanded/supplied of a range of goods in the market.		This is in contrast to [[general equilibrium analysis]], which studies (in a simplistic model of [[perfect information]], zero [[transaction cost]]s, and [[rational behavior]]) the simultaneous interaction of prices and quantity demanded/supplied of a range of goods in the market.

Vipul at 21:55, 20 June 2009

2009-06-20T21:55:41Z

← Older revision		Revision as of 21:55, 20 June 2009
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	==Definition==		==Definition==

	'''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular [[good]], the equilibrium price (the [[market price]]), and whether and how quickly the price converges to this market price, ''[[ceteris paribus]]'' all other things in the economy (in particular, the prices and quantities demanded and supplied of other commodities, the incomes and wealth of the buyers and sellers, etc.). This is in contrast to [[general equilibrium analysis]], which studies (in a simplistic model of perfect information, zero transaction ~~costs~~, and rational behavior) the simultaneous interaction of prices and quantity demanded/supplied of a range of goods in the market.		'''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular [[good]], the equilibrium price (the [[market price]]), and whether and how quickly the price converges to this market price, ''[[ceteris paribus]]'' all other things in the economy (in particular, the prices and quantities demanded and supplied of other commodities, the incomes and wealth of the buyers and sellers, etc.).

			This is in contrast to [[general equilibrium analysis]], which studies (in a simplistic model of [[perfect information]], zero [[transaction cost]]s, and [[rational behavior]]) the simultaneous interaction of prices and quantity demanded/supplied of a range of goods in the market.

Vipul: Created page with '==Definition== '''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular good, the equilibrium price (t...'

2009-06-20T21:54:44Z

Created page with '==Definition== '''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular good, the equilibrium price (t...'

New page

==Definition==

'''Partial equilibrium analysis''' is the analysis of the interaction between buyers and sellers in the market for a particular [[good]], the equilibrium price (the [[market price]]), and whether and how quickly the price converges to this market price, ''[[ceteris paribus]]'' all other things in the economy (in particular, the prices and quantities demanded and supplied of other commodities, the incomes and wealth of the buyers and sellers, etc.). This is in contrast to [[general equilibrium analysis]], which studies (in a simplistic model of perfect information, zero transaction costs, and rational behavior) the simultaneous interaction of prices and quantity demanded/supplied of a range of goods in the market.