Question

Distinguish between the following: 

Partial equilibrium and general equilibrium

Answer 1

Basis of Difference	Partial Equilibrium	General Equilibrium
1. Definition	Partial equilibrium refers to equilibrium in one market, assuming that there is no change in other markets	General equilibrium is the method of studying equilibrium in different markets simultaneously.
2. Uses	It is used in microeconomics.	It is used in macroeconomics
3. Assumption	It assumes that other things remain constant.	It assumes that the variables are dependent on each other
4. Process	It isolates an individual unit from other forces.	It explains the inter relationship and interdependence between aggregate economic variables.