EQUILIBRIUM PRICE ON THE MARKET OF ONE GOOD. EVANS MODEL
Abstract
In economic theory, the concept of equilibrium is important. This is the state of the object, which it retains in the absence of external influences. Achieving a balance between supply and demand is one of the main indicators of the effectiveness of the functioning of the country's economy in market conditions. There are many models for establishing an equilibrium price in the market for one product. The most famous equilibrium models are considered: L. Walras, A. Marshall, "spider" model with discrete time and Evans' model with continuous time. Evans's economic model for studying the establishment of an equilibrium price in the market of one product is considered. Its solution is given using the apparatus of differential equations. Graphs of the dependence of price on time are constructed, proving the main assumption of the model that the price changes depending on the relationship between supply and demand and its increase is directly proportional to the excess of demand over supply and the duration of this excess. In economic theory, the concept of equilibrium is important. This is the state of the object, which it retains in the absence of external influences. Achieving a balance between supply and demand is one of the main indicators of the effectiveness of the functioning of the country's economy in market conditions. There are many models for establishing an equilibrium price in the market for one product. The most famous equilibrium models are considered: L. Walras, A. Marshall, "spider" model with discrete time and Evans' model with continuous time. Evans's economic model for studying the establishment of an equilibrium price in the market of one product is considered. Its solution is given using the apparatus of differential equations. Graphs of the dependence of price on time are constructed, proving the main assumption of the model that the price changes depending on the relationship between supply and demand and its increase is directly proportional to the excess of demand over supply and the duration of this excess.
References
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