Limitations
- It is restricted to one particular field. Be it a case of an individual, a firm or an industry. It does not take into account the study of economics.
- It lacks the ability to study the interrelations of all the parts of the economy.
- This analysis will fail if the improbable assumptions, which disconnect the study of specific market from the rest of the economy, are not taken into consideration.
- It has been unsuccessful in explaining the outcome of economic disturbance in the market that leads to demand and supply changes, moving from one market to another and thus instigating second, third order waves of change in the whole economy.
Read more about this topic: Partial Equilibrium
Famous quotes containing the word limitations:
“... art transcends its limitations only by staying within them.”
—Flannery O’Connor (1925–1964)
“Growing up means letting go of the dearest megalomaniacal dreams of our childhood. Growing up means knowing they can’t be fulfilled. Growing up means gaining the wisdom and skills to get what we want within the limitations imposed by reality—a reality which consists of diminished powers, restricted freedoms and, with the people we love, imperfect connections.”
—Judith Viorst (20th century)
“No man could bring himself to reveal his true character, and, above all, his true limitations as a citizen and a Christian, his true meannesses, his true imbecilities, to his friends, or even to his wife. Honest autobiography is therefore a contradiction in terms: the moment a man considers himself, even in petto, he tries to gild and fresco himself.”
—H.L. (Henry Lewis)