ADVANTAGES

This could be useful because it allows us to forecast where a market will be in the future, after specified changes. We mention in the last section of this unit, a technique called 'comparative statics' and 'partial equilibrium analysis'. Without equilibrium, there is virtually no point in using neoclassical analysis. Therefore, neoclassical economists interested in markets under disequilibrium conditions construct their model to include an eventual, long run equilibrium position towards which the market is moving, even if it never actually arrives!

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