Answer to Question #227204 in Microeconomics for Anisha Kumar

Question

Imagine you are an economist, why will you do comparative statics analysis? What role do endogenous variables and exogenous variables play in comparative statics analysis?

Answer 1

Comparative statics tends to assist in studying changes in the demand and supply as the economist analyzes market, and similarly to learn changes in fiscal and monetary policy for the case of the entire economy.