Partial equilibrium

From Wikipedia, the free encyclopedia

A partial equilibrium is a type of economic equilibrium, where the clearance on the market of some specific goods is obtained independently from prices and quantities demanded and supplied in other markets. In other words, the prices of all substitutes and complements, as well as income levels of consumers are constant. Here the dynamic process is that prices adjust until supply equals demand. It is a powerfully simply technique that allows one to study equilibrium, efficiency and comparative statics.

[edit] History

Léon Walras first formalized the idea of a one-period economic equilibrium of the general economic system, but it was French economist Antoine Augustin Cournot and English political economist Alfred Marshall who developed tractable models to analyze an economic system.


[edit] See also

[edit] External links

 This economics or finance-related article is a stub. You can help Wikipedia by expanding it.
 This article related to microeconomics is a stub. You can help Wikipedia by expanding it.