General equilibrium approaches:

Addressing the consumer and producer's objectives in the preceding analysis, we have considered only so-called partial equil  ibri  um. Note  that the attribute "partial" refers  to  looking  at  an  equilibrium  result  in  one  market  for  a particular good only. It is just  like a scenario you have worked out where the increased demand  for agricultural products due to an  increased income only and nothing has happened  to other activities in  the agricultural sector. That is to  say,  the impact of changed  demand  on markets  such  as  inputs  and employment has not  come into effect. See that these other markets will  also experience  the change, which has been overlooked by us.

A model that includes the interdependencies  of all the markets in the economy can account for the fact that  if the equilibrium price  in one market changes, the equilibrium prices and hence quantities in other markets are also affected.  

To understand  such dimensions, we need a model  that  can  accommodate the interactions of all market simultaneously and determine  the  properties of equilibria in all the markets. We have to develop  a general equilibrium model, in  contrast  to  the partial equilibrium models used thus far.