page_title: Partial equilibrium
section_title: Welfare effect of trade policies
hierarchical_section_title: Partial equilibrium / Welfare effect of trade policies
caption_attribution_description: English: graph showing Consumer Surplus
context_page_description: In economics, partial equilibrium is a condition of economic equilibrium which takes into consideration only a part of the market to attain equilibrium.
  As defined by Leroy lopes, "A partial equilibrium is one which is based on only a restricted range of data, a standard example is price of a single product, the prices of all other products being held fixed during the analysis."
  The supply and demand model is a partial equilibrium model where the clearance on the market of some specific goods is obtained independently from prices and quantities in other markets. In other words, the prices of all substitute goods and complement goods, as well as income levels of consumers, are taken as given. This makes analysis much simpler than in a general equilibrium model, which includes an entire economy.
  Here, the dynamic process is that prices adjust until supply equals demand. It is a powerfully simple technique that allows one to study equilibrium, efficiency and comparative statics.
context_section_description: In partial equilibrium the welfare effects on consumers who purchase and the producers who produce in the market is distinguished by consumer surplus and producer surplus.
caption: Graph showing Consumer Surplus in the market, P refers to Price on the Y-axis,  Q refers to Quantity on X-axis,  D- Demand Curve,  S-Supply Curve[5]
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