OMTEX CLASSES: Partial equilibrium and General equilibrium.

Partial equilibrium and General equilibrium.

The difference between partial and general equilibrium analysis is that

A) partial equilibrium analysis focuses on the market in which the tax is imposed, whereas general equilibrium analysis looks at many markets.

B) general equilibrium analysis includes intergenerational redistribution and partial equilibrium analysis looks only at the effects on one generation.

C) general equilibrium analysis allows both prices and quantities to adjust and partial equilibrium analysis looks only at prices.

D) partial equilibrium analysis is short-run analysis and general equilibrium analysis takes into account long-run adjustments.