enow.com Web Search

Search results

  1. Results from the WOW.Com Content Network
  2. Economic equilibrium - Wikipedia

    en.wikipedia.org/wiki/Economic_equilibrium

    An economic equilibrium is a situation when the economic agent cannot change the situation by adopting any strategy. The concept has been borrowed from the physical sciences. Take a system where physical forces are balanced for instance.This economically interpreted means no further change ensues.

  3. Supply and demand - Wikipedia

    en.wikipedia.org/wiki/Supply_and_demand

    If the supply curve starts at S 2, and shifts leftward to S 1, the equilibrium price will increase and the equilibrium quantity will decrease as consumers move along the demand curve to the new higher price and associated lower quantity demanded. The quantity demanded at each price is the same as before the supply shift, reflecting the fact ...

  4. Walras's law - Wikipedia

    en.wikipedia.org/wiki/Walras's_law

    Walras's law is a consequence of finite budgets. If a consumer spends more on good A then they must spend and therefore demand less of good B, reducing B's price. The sum of the values of excess demands across all markets must equal zero, whether or not the economy is in a general equilibrium.

  5. Bertrand competition - Wikipedia

    en.wikipedia.org/wiki/Bertrand_competition

    The outcome of the model equilibrium involved firms pricing above marginal cost; hence, the competitive price. In his review, Bertrand argued that each firm should instead maximise its profits by selecting a price level that undercuts its competitors' prices, when their prices exceed marginal cost. [ 2 ]

  6. Effect of taxes and subsidies on price - Wikipedia

    en.wikipedia.org/wiki/Effect_of_taxes_and...

    The original equilibrium price is $3.00 and the equilibrium quantity is 100. The government then levies a tax of $0.50 on the sellers. This leads to a new supply curve which is shifted upward by $0.50 compared to the original supply curve. The new equilibrium price will sit between $3.00 and $3.50 and the equilibrium quantity will decrease.

  7. Comparative statics - Wikipedia

    en.wikipedia.org/wiki/Comparative_statics

    If we equate quantity supplied with quantity demanded to find the equilibrium price , we find that P e q b = a − c g − b . {\displaystyle P^{eqb}={\frac {a-c}{g-b}}.} This means that the equilibrium price depends positively on the demand intercept if g – b > 0, but depends negatively on it if g – b < 0.

  8. Edgeworth box - Wikipedia

    en.wikipedia.org/wiki/Edgeworth_box

    We will use the term 'price line' to denote a common tangent to two indifference curves. An equilibrium therefore corresponds to a budget line which is also a price line, and the price at equilibrium is the gradient of the line. In Fig. 3 ω is the endowment and ω ' is the equilibrium allocation. The reasoning behind this is as follows. Fig. 4.

  9. Competitive equilibrium - Wikipedia

    en.wikipedia.org/wiki/Competitive_equilibrium

    Competitive equilibrium (also called: Walrasian equilibrium) is a concept of economic equilibrium, introduced by Kenneth Arrow and Gérard Debreu in 1951, [1] appropriate for the analysis of commodity markets with flexible prices and many traders, and serving as the benchmark of efficiency in economic analysis.