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)
“Much of what contrives to create critical moments in parenting stems from a fundamental misunderstanding as to what the child is capable of at any given age. If a parent misjudges a child’s limitations as well as his own abilities, the potential exists for unreasonable expectations, frustration, disappointment and an unrealistic belief that what the child really needs is to be punished.”
—Lawrence Balter (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)