Questions tagged [equilibrium]

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Total derivative evaluates to zero: problem while doing comparative statics

I am playing with a toy model version for my research and I have an implicit equation defining the equilibrium: $$\phi = \frac {S}{NF(\phi(u-\eta)+\eta - c)}$$ where $S,N,u,\eta,c$ are parameters and $...
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2 votes
3 answers
116 views

What does it mean when an economist talks about "equilibrium"

In economics, there are many equilibrium concepts, like equilibrium under perfect competition, Monopolist equilibrium, competitive equilibrium, general equilibrium, nash equilibrium, equilibrium price,...
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1 answer
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When solving for a new equilibrium price after the institution of a tax, I keep getting a price that is lower than my previous equil price. Why?

For Example: $D(p) = 50 - p$ $S(p) = p/20$ The p* of this problem is $47.61$, however, when I add a .1 proportional tax I get an answer of $43.29$ which does not make sense because that price is lower ...
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1 vote
1 answer
129 views

Fall in price of sugar affects price and quantity of candy [closed]

Using the supply and demand model, explain and illustrate how the price and quantity of candy would be affected by sugar prices dropping, starting from the equilibrium point. Am I right in stating ...
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1 vote
0 answers
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How to define the market and the clearance conditions of a general sectoral computable equilibrium model?

I am trying to implement a general multiproduct market (partial/sectoral) computable equilibrium model, where "general" refers to the fact that the relation of complementarity/...
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How to find equilibrium price with inverse demand? [closed]

So I know how to do it when it is a function of Q but as a function of P I'm confused about what steps I have to take demand: p = 1000-0.025q supply: p=150+0.033q
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1 vote
0 answers
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Price setting for a pure exchange economy, with two goods and two agents, with possible different utility functions that depends on total consumption

Consider a pure exchange economy comprised of two agents with differentiable utility functions that are strictly increasing and strictly concave. There are only two goods in this economy (x,y) and ...
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0 answers
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Simple supply and demand problem

I'm not sure about this, can I ask you if I'm wrong? Thanks. Data: $$Q_{s}=P/2$$ $$Q_{d}=P-42$$ Questions: a) How many units will be traded at 35 dollars? At $14 dollars? b) What quantity at what ...
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-1 votes
1 answer
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Why is there no room for expectations if the economy is always in equilibrium?

Joan Robinson (1972): If the economy is always in equilibrium anyway, where is the room for expectations?
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