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In its current form, the model represents the world economy in 25 countries/regions, each with 35 economic sectors.; The baseline projection as used for the Environmental … A-maize-ing tailgating In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.General equilibrium theory contrasts to the theory of partial equilibrium, which only analyzes single markets. 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