Recent development of demand theory, Microeconomics

RECENT DEVELOPMENT OF DEMAND THEORY:

 The basic theory of consumer behaviour discussed in the previous unit can be extended in many directions, and can be applied to cover optimal behaviour for a variety of specific types of utility functions. Some of these extensions and specific applications are discussed here. In the market, prices of all goods are given to the consumers. They can't influence the price by changing their own decisions. Some times prices are also given to the individual firm i.e., in some cases, firms also are not able to charge prices that they want and have to settle with the price prevailing in the market. There ware considerable interest therefore among the economist to explain the price formation in different types of markets. The Demand-Supply analysis is the most important among them. Once the equilibrium is achieved the second most important question came to mind is the question of stability of that equilibrium. There are many approaches to determine the stability property of equilibrium. Among them Cobweb model is simplest and quite elegant in nature.  

Posted Date: 10/26/2012 4:45:25 AM | Location : United States







Related Discussions:- Recent development of demand theory, Assignment Help, Ask Question on Recent development of demand theory, Get Answer, Expert's Help, Recent development of demand theory Discussions

Write discussion on Recent development of demand theory
Your posts are moderated
Related Questions
concept of supply and the factors that affect the supply

cars:0,2,4,6,8 tow truck:30,27,21,12,0

Why some country saving less and consumption more?

Time is a significant determinant of price elasticity.  If a price changes, it might take consumers a certain amount of time to discover alternative lifestyles or commodities to ac

Explain how oligopolies can work both for and against consumers. Oligopolies market power can of course work against consumers - as price-setting and any form of collusion will


Hi I need help with elasticity. I think the problem has already been posted to your site.

Elimination of waste - Stock Management Here is a definition of the elimination of waste: Anything other than the minimum amount of equipment, material, parts and working t

advantages and disadvantages

Q. Explain about Gross Domestic Product? Gross Domestic Product:Value of all the services and goods produced for money in an economy, evaluated at their market prices. Excludes