The Law of Supply and Demand: Here It Is Finally
17 Pages Posted: 19 Aug 2014 Last revised: 19 Apr 2015
Date Written: August 17, 2014
There is no such thing as a law of human or social behavior. The conceptual consequence of this paper is to discard the subjective-behavioral axioms and to take objective-structural axioms as formal foundations. The central piece of economic theory is the interaction of supply and demand which determines prices and quantities. Supply and demand in turn are assumed to be determined by subjective factors. In the structural axiomatic paradigm the Law of Supply and Demand follows solely from objective factors. The Law consists of measurable variables and is testable in principle. The results prove the superiority of the new paradigm.
Keywords: new framework of concepts, structure-centric, axiom set, harmonic structure
JEL Classification: B59, D40
Suggested Citation: Suggested Citation