Market Equilibrium Vs. Market Imbalance
FEA Working Paper No. 2010-03
8 Pages Posted: 19 Oct 2009 Last revised: 7 Jan 2010
Date Written: October 16, 2009
This paper proposes a basic graphical and mathematical multidimensional approach to study the market behavior. Our basic assumption is that demand and supply is affected by a large amount of variables without any restriction or isolation among them such as the case of the Ceteris Paribus assumption applies into the market equilibrium analysis. Hence, all these variables that affect demand and supply always keeps in a dynamic imbalance state, it is mean that demand and supply can be affected by different internalities and externalities from economic forces, social forces, political forces, technological forces, environment forces, institutional forces and different economic agents (e.g. public sector -government-, private sector -firms-, consumers) behavior. Therefore, the study of the market behavior request alternative economic assumptions and economic models that available to explain closely the real world.
Keywords: econographicology, multi-dimensional graphs and microeconomics
JEL Classification: C02
Suggested Citation: Suggested Citation