Partial Equilibrium Theory

Discipline: Economics

Developed by French economist Antoine Augustin Cournot (1801-1877) and English political economist Alfred Marshall (1892-1924), partial equilibrium theory examines the conditions of equilibrium in an individual market or in part of a national economy.

Partial equilibrium theory usually looks at the relationship between two economic variables, assuming other variables are constant in value.

Also see: classical macroeconomic model, general equilibrium theory, law of markets

Source:
A Marshall, Principles of Economics (London, 1890)

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