Supply and Demand Mathematics: Cobweb Diagrams and Difference Equations скачать в хорошем качестве

Supply and Demand Mathematics: Cobweb Diagrams and Difference Equations

From a mathematical perspective, we look at the laws of supply and demand, both functions of the price of a commodity - as price increases, demand decreases and supply increases. We model supply and demand as constant rate changes with respect to price, represented by straight lines in a graph. I introduce four parameters - two slopes and two intercepts - to construct our supply and demand functions. We explore how these functions interact in the market, leading to the equilibrium solution -- the price where supply and demand agree -- and an understanding of the long-term stability of the price. We also look at market adjustments and their effects on price, developing a difference equation to model these price changes over time. Finally, we mathematically transform the difference equation that models the price adjustments in a market, emphasizing a more intuitive understanding of market dynamics. (Mathematical Modeling Lecture 2.8) #mathematics #supplyanddemand #economics #mathematicalmodeling #cobwebdiagrams #mathtutorial #equilibrium #lawofsupply #lawofdemand