In this article we will discuss about the market equilibrium in terms of demand price and supply price. Let us first give the definitions. Demand price (pd) is the price that the buyers are willing to pay to demand a certain quantity (q) of the good. At any q, demand price is obtained along the demand curve. For example, if [...]
In this article we will discuss about the market equilibrium in the Marshallian sense. Suppose, the demand and supply functions for a commodity are: qd = φ(pd) (4.18) and qs = Ψ(ps) (4.19) where pd and ps denote the demand price and supply price, respectively. It can be called the inverse of the demand and supply functions (4.18) and (4.19) [...]
The below mentioned article provides notes on the dynamic stability of market equilibrium. Market equilibrium is stable in the dynamic sense if the price converges to the equilibrium price over time; it is unstable if the price moves away from the equilibrium over time. The dynamic analysis of the stability of equilibrium tries to find out the course of price [...]