Question
Partial Equilibrium and General Equilibrium.
| 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 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 inter dependence. |
| (d) Partial Equilibrium is regarded as a worm’s eye-view. | (d) General Equilibrium is a bird’s eye-view. |
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