Partial equilibrium is an economic analysis tool used to examine the equilibrium conditions in a specific market in isolation from other markets. It focuses on the supply and demand dynamics within that particular market, assuming that other markets remain constant or unaffected by changes in this market. In a partial equilibrium framework, key elements include: 1. **Supply and Demand Curves**: The model uses supply and demand curves to determine the equilibrium price and quantity for a good or service.
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