“CONTINOUS

IMPROVEMENT IS BETTER
THAN DELAYED
PERFECTION”
PARTIAL AND
GENERAL
EQUILIBRIUM
ANALYSIS
PRESENTORS:
LINDEL P. AGUSTIN
RAPHAEL IVAN BAUTISTA
PARTIAL VS. GENERAL EQUILIBRIUM
ANALYSIS
MEANING:
PARTIAL EQUILIBRIUM GENERAL EQUILIBRIUM
ANALYSIS ANALYSIS

A partial equilibrium is one which is A comprehensive study of several

based on only a restricted range of data, a economic variables – their interdependences
standard example is price of a single product, and interrelations for understanding how the
the prices of all other products being held fixed economic system as a whole functions.
during the analysis.
PARTIAL VS. GENERAL EQUILIBRIUM
ANALYSIS
DIFFERENCES:

PARTIAL GENERAL
 PARTIAL EQUILIBRIUM GENERAL EQUILIBRIUM

IT IS USED IN MICROECONOMICS. IT IS USED IN MACROECONOMICS.

EQUILIBRIUM IN ONE MARKET, EQUILIBRIUM IN DIFFERENT

ASSUMING THERE IS NO CHANGE MARKETS SIMULTANEOUSLY.
IN OTHER MARKETS.

CONSIDERING THE EFECT OF CONSIDERING THE EFFECT OF

ONLY TWO VARIABLES AT A TIME. MANY VARIABLES AT A TIME.
ALL OTHER VARIABLES ARE
CONSIDERED TO BE CONSTANT.

REGARDED AS WORM’S EYE REGARDED AS BIRD’S EYE VIEW.

VIEW.

NARROW CONCEPT. WIDER CONCEPT.

PARTIAL VS. GENERAL EQUILIBRIUM
ANALYSIS
THEORY:

PARTIAL EQUILIBRIUM GENERAL

EQUILIBRIUM
IT IS RELATED TO IT IS RELATED TO

PRICE INCOME
THEORY THEORY
 DID YOU KNOW?

Economists consider Léon Walras

(1813-1910),
a French mathematical economist,
as the
FATHER OF THE GENERAL
EQUILIBRIUM THEORY.
 THANK YOU FOR
LISTENING, GUYS!