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प्रश्न
Write a short note on the following:
Partial equilibrium
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उत्तर
Partial equilibrium refers to an equilibrium analysis that is based on a restricted range of data and concerns a single equilibrium in a particular market or sector. It essentially studies the equilibrium condition of one economic variable or a single individual market while holding other markets or variables constant. According to Prof. Stigler, a partial equilibrium is one which is based on a limited or restricted set of data rather than the entire economy.
In simpler terms, partial equilibrium isolates and examines the equilibrium in one market independently from other markets, not considering interdependencies or feedback effects that might exist in the broader economy.
This is in contrast to general equilibrium, which looks at the simultaneous equilibrium across all markets in the economy.
Thus, partial equilibrium analysis simplifies the study by focusing on a single market or sector, assuming other things remain unchanged, which makes it easier to understand specific market mechanisms but may overlook broader economic interactions.
