Stability of Equilibrium:
1. Static Stability:
a) Walrasian Adjustment Process:
If excess demand (supply) exists, the market price will go up (down).
Excess supply (demand) price above (below) equilibrium price
ED(P) = D(P) − S(P) - Excess Demand Function
(dED(P)/dP)< 0
(Try to depict diagrams with stable and unstable conditions).
b) Marshallian Adjustment Process:
Housing market has very steep supply curve. It’s rigid to adjust price to eliminate any existence of excess demand or supply.
EDP(Q) = PD − PS = d(Q) − s(Q) : Excess Demand Price Function
(dEDP (Q)/dQ)<0
2. Dynamic Stability:
a. Discrete time (Cobweb Process):
Dt = −aPt + b (demand) (1)St = αPt−1 − β (supply) (2) ( a, b,α ,β are all positive numbers).
Equilibrium condition implies that Dt = St .
So we get aPt +αPt−1 − b − β = 0 (3). And finally, rewriting w.r.t. Pt ,
Pt= −(α/a) *Pt-1+ (b+ β)/a
b. Continuous time (Differential Equation):
|slope of supply| >| slope of demand| (condition for dynamic stability)
Latest technology based Microeconomics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Microeconomics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Microeconomics, project ideas and tutorials. We provide email based Microeconomics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Microeconomics Homework help and assignment help services. They use their experience, as they have solved thousands of the Microeconomics assignments, which may help you to solve your complex issues of Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com first law or proposition assignment help-homework help by online lamarckism tutors
Theory and lecture notes of Nonlinear Systems-Newtons Method all along with the key concepts of ector Notation, Linear Approximation for Vector Functions, Newton’s Method. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Nonlinear Systems-Newtons Method.
tutorsglobe.com intensive of hypertension assignment help-homework help by online blood pressure tutors
identification of the fault in the given tv receiver - the tv receiver is switched on firstly. the picture displayed in the screen is height less. switch off the receiver directly and verify the fault is in the vertical stage.
www.tutorsglobe.com offers thermo-chemistry homework help, thermo-chemistry assignment help, online tutoring assistance, physical chemistry solutions by online qualified tutor's help.
tutorsglobe.com merits of mixed economy assignment help-homework help by online mixed economy tutors
Superposition of Waves I tutorial all along with the key concepts of Principle of superposition of waves, Stationary waves, antinodes, Velocity of Particle and Strain at any Point in Stationary Wave, Harmonics in Stationary Waves, Properties of Stationary Waves
tutorsglobe.com glucose tolerance test assignment help-homework help by online diabetes mellitus tutors
Theory and lecture notes of Dynamic Characteristics III, all along with the key concepts of Inverter Fall Time, Storage Time and Rise-Time. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Dynamic Characteristics III.
Thermodynamic Potentials tutorial all along with the key concepts of Internal Energy, Enthalpy, Helmholtz Free Energy, Gibbs free energy, isothermal process
Take our top-rated Biological Techniques Assignment Help service and relive your all stress and secure A++ at budget-friendly prices!
Probability distributions tutorial all along with the key concepts of Normal Distribution, Properties of a Normal Curve, Standardizing the normal curve, Poisson Distribution and Binomial Distribution
tutorsglobe.com main axis elongated assignment help-homework help by online racemose inflorescence tutors
tutorsglobe.com economic importance of algae assignment help-homework help by online algae tutors
Soil transmitted helminths tutorial all along with the key concepts of Ascaris lumbricoides, human hookworms, Trichuris trichiura and human whipworm
1938384
Questions Asked
3689
Tutors
1452763
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!