Destabilizing Impacts of Price and Quantity Adjustments to Relative Supply and Demand (Classic Reprint) - Hardcover

Inhaltsangabe

Excerpt from Destabilizing Impacts of Price and Quantity Adjustments to Relative Supply and Demand

The classical view that imbalances in supply and demand are soon rectified leading to equilibrium is based on a simple model of supply and demand that has been refined in many ways. In the basic model, supply and demand for a particular commodity are assumed to depend on the price of that commodity. In one refinement, demand may also be considered a function of tastes and consuner income. Alternatively, demand for a particular commodity may depend partly on prices of all complementary and substitute goods. A still further extension suggested by Arrow and Nerlove (1958) bases demand and supply on both current and expected future prices. Nonetheless the simplest model of supply and demand bases both only on the price of that commodity (and on other factors such as tastes which are approximately constant over the time frame of the analysis). This model will be the basis of the discussion here for two reasons: first, it is the pervasive focus in the literature of most treatments of stability of equilibrium (see, for example, Samuelson Chapter IV, and Negishi and second, it permits a clear focus on the dynamics of supply and demand adjustment.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Die Inhaltsangabe kann sich auf eine andere Ausgabe dieses Titels beziehen.