ECON 101 Lecture : Supply and Demand
Document Summary
Price supply and demand are that price is determined by the market are jointly determined by the interaction of. So price t quantity are the determined by model. All other variables were used to demand input prices preferences technology are taken as given variables think endogenous about supply are exogenous variables to be that. The 2 variables the model for functions to solve the 2 unknowns are our. 2 unknowns that we for we need 2 t these are the supply equations to. Demand use solve that a finished the a set kind of stopping rule. Every model needs some tells us when we"ve solved the model analysis for many economic models the stopping rule of equilibrium conditions. In the background were households have solved their problems profit maximization utility maximization. S the firms r t p equilibrium a. Solving for equilibrium form of d g q.