General equilibrium demand and supply curves can be used to measure the multiple
market effects of interventions m a single market. However, complications arise
when feedback into the mtervened-m market comes through both demand and supply
channels. This article presents a new and straightforward proof of the significance
of general equilibrium curves when there is only one source of feedback, establishes
the conditions under which multiple sources of feedback invalidate the analysis, and
demonstrates that the general equilibrium curves become policy dependent when
there are multiple sources of feedback.
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