What factors determine whether a particular economic issue can be adequately analyzed by using a partial rather than a general equilibrium approach?

 

Answer:-

Basically In partial Equilibrium analysis it considers only single market while general equilibrium analysis considers many market simultaneously.

Following factors are responsible for adopting partial equilibrium analysis:

• When particular policy affects only single market substantially. other markets are affected quite marginally. Thus, it becomes rational to study only single market.

• Partial equilibrium analysis is carried out when data on other markets are not available easily.

• For, simply understanding agricultural commodity, partial equilibrium analysis is carried out but on other hand, analysing impact of rise in oil price, general equilibrium analysis is carried. Oil price has multiple ramifications for other markets.