Anti...
"...there are two forces in the world, entrophy and energy. One leads into quietude, to happy equilibrium, the other to the destruction of equilibrium, to torturingly perpetual motion..."
Sayfa 161Kitabı okudu
In competitive markets where prices are free to move up and down, those prices fluctuate in such a way that supply equals demand. To simplify somewhat, we can say that Optimization + Equilibrium = Economics. This is a powerful combination, nothing that other social sciences can match.
The overstrain upon our brains has produced a general depression throughout the system. Change of scene, and absence of the necessity for thought, will restore the mental equilibrium.
If we hold commodity prices constant, each level of money income results in an equilibrium market basket for the consumer. This analysis gives us the income-consumption curve.
Sayfa 77Kitabı okudu
Individuals maximizing utility subject to their budget constraint attain the highest possible level of utility at a point of tangency between their budget constraint and an indifference curve. (...) A consumer optimum occurs at the point where the highest indifference curve and the budget constraint are tangent.
Maximum utility bundle:
1. Equimarginal/Marginal Principle:
- 0 = MUx.(∆X) + MUy.(∆Y)
- MRS(x,y) = MUx/MUy
2. All income is spent.
//When consumers maximize their satisfaction/utility:
- MRS(x,y) = Px/Py
- MUx / MUy = Px/Py
When the two conditions above are satisfied, a state of consumer equilibrium is said to occur. This is an equilibrium because the individual consumer has no reason to change the mix of goods and services consumed once this outcome is achieved.
A corner solution exists in a situation in which the budget line reaches the highest achieable indifference curve along an axis (the vertical axis). (...) In non-technical terms, a corner is available when the chooser is either unwilling or unable to make a tradeoff. It holds true if there is a higher preference vs. a lower substitution between two goods.
Sayfa 65Kitabı okudu
Equilibrium is a situation in which the supply and demand equals to each other.
Sayfa 37Kitabı okudu