Partial equilibrium is an economic analysis that focuses on a single market or sector, examining the supply and demand within that specific context while assuming other markets remain unchanged. This approach helps to understand how changes in price or quantity affect that particular market without considering broader economic interactions. In partial equilibrium analysis, factors such as consumer preferences, production costs, and market competition are evaluated to determine equilibrium price and quantity. This method is useful for policymakers and economists to assess the impact of specific interventions, like taxes or subsidies, on a targeted market, such as the agricultural sector or labor market.