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:
“To note an artist’s limitations is but to define his talent. A reporter can write equally well about everything that is presented to his view, but a creative writer can do his best only with what lies within the range and character of his deepest sympathies.”
—Willa Cather (1876–1947)
“That all may be so, but when I begin to exercise that power I am not conscious of the power, but only of the limitations imposed on me.”
—William Howard Taft (1857–1930)
“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)