Question

Define and explain Partial equilibrium

Answer 1

Answer:

Partial equilibrium is a condition of economic equilibrium which takes into consideration only a part of the market, ceteris paribus, to attain equilibrium.

Answer 2

Answer:

Equilibrium is the state of Stable Condition without any change in the market. The price buyer wants to pay equal to the price offered by the seller. On such situation no tendency to change the price or quantity arises.

Partial Equilibrium:

• Partial Equilibrium theory pronounced by world's great economist Alfred Marshall. The theory which speaks only about particular factor keeping others remain unchanged.
• The curve of Supply and Demand is considered as a Partial Equilibrium model. It does not include other things like income, price of substitute and complement etc.
• Partial Equilibrium speaks about the stable condition between ONLY LIMITED FACTORS. It helps to understand about specific product, market, sector by leaving out anything else aside. It is simple and standard theory to understand Equilibrium Condition.