anonymous
  • anonymous
why a linear fucyion may not be adequate for describing the supply and demand fuctions?
Mathematics
  • Stacey Warren - Expert brainly.com
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katieb
  • katieb
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amistre64
  • amistre64
lol.... becasue most people are slewed ;)
amistre64
  • amistre64
skewed... ruined a perfectly good bit with a typo...
amistre64
  • amistre64
the economies of scale is a good reason; it is not linear and it affects supply and demand

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amistre64
  • amistre64
keynesian economics says that the supply curve is linear and then bends up at the Nrgdp
anonymous
  • anonymous
Linear with respect to what?
amistre64
  • amistre64
linear with respect to supply and demand :)
amistre64
  • amistre64
the demand curve has an inverse relation; and the supply curve has a direct relation; demand increases as price drops and supply increases as prices rise; the point where demand price = supply price is the market price
amistre64
  • amistre64
but economies of scale mean that the price for one item differs with respect to the amount of item being sold; due to the effective use of resources to lower price by quantity
amistre64
  • amistre64
there can also be a max or min at which the curves turn back on themselves and its refered to as laffers curve
anonymous
  • anonymous
Laffers curve refers to tax revenue rates.
amistre64
  • amistre64
tax rates follow a laffer curve; but laffers curve is a generality of many circumstances
anonymous
  • anonymous
Explain how it relates to supply, demand, and price.
amistre64
  • amistre64
lol.... laffers curve is its own explanation; its the relation of price to demand; whether that demand is a supply or a 'demand' there are limits to how many how much and how often we will tolerate things
anonymous
  • anonymous
Laffers curve says that tax rate zero, you collect zero, and at 100% you collect zero, so since it's a continuous function there's a max in between. Is there any supply, price, or demand range that runs from 0% to 100%?
amistre64
  • amistre64
laffers curve is a description of human behavioural outputs given circumstances; it isnt a set in stone device ..
amistre64
  • amistre64
tax rates are a model of laffers curve; not the result of it.... casue and effect..cause and effect
anonymous
  • anonymous
Tax rates are an input to Laffer's curve. They run from 0% to 100%. If you haven't any such range for some variable, you haven't anything that resembles a Laffer curve. There was a Mr. Laffer, and he was specific.
amistre64
  • amistre64
if im wrong about the laffer than im wrong.... but that doesnt change the answer that human behaviour itself is not linear and therefore a linear representation for supply and demand is not always adequat
amistre64
  • amistre64
laffers curve demonstrates the human behaviour is not linear lol
anonymous
  • anonymous
I'm trying to figure out anything remotely close to linear with respect to supply, demand, and price.
amistre64
  • amistre64
the natural Rgdp is a vertical line in the long run supply curve ;)
anonymous
  • anonymous
Rgdp is not familiar to me.
amistre64
  • amistre64
the supply curve modeled by keynesian is horizontal at points to indicate the inelasticity of price to drop
amistre64
  • amistre64
real gross domestic production
amistre64
  • amistre64
at natural Rgdp you are producing as much as you can with the resources available...
amistre64
  • amistre64
supply can only be a vertical representation then; the short run supply curve is skewed, but eventually settles into the long run
amistre64
  • amistre64
if we are producing/supplying all we can ; then a raise in price doesnt equal a raise in supply ..
amistre64
  • amistre64
if we do happen across a situtation where we can become more efficient in the supply; then we can lean into an inflationary condition during the short run...
anonymous
  • anonymous
This is a math forum. A vertical line approached asymptotically does not make the function that approaches it linear. Anything but.
amistre64
  • amistre64
a vertical line is a line lol; its called x = Nrgdp
amistre64
  • amistre64
the slope of the line is undefined; but the line exists
anonymous
  • anonymous
Not all lines represent linear functions. This one doesn't.
amistre64
  • amistre64
well, if we want to get technical about the term 'function' then id have to agree ;)
anonymous
  • anonymous
This whole discussion has to do with some linear function connecting supply, demand, and price in some fashion. I don't see any description that looks anything like a linear function.
anonymous
  • anonymous
So my response to the long-ago question would be, what exactly is the function you're hoping to represent linearly? I haven't heard that yet.
amistre64
  • amistre64
i interpret it as "why is a linear function not good to represent a supply or a demand curve". To wit; becasue human behavior is not linear.
amistre64
  • amistre64
Since human behaviour controls supply and demand; then a linear representation is not gonna be accurate/adequate depending on the amount of precision you wish to find
anonymous
  • anonymous
Do you teach economics somewhere? You spelling suggests you are not in the United States.
amistre64
  • amistre64
teach? nah.... I just finished up a macroeconomics course in college last semester tho... even got an 'A' somehow :) and im actually in the us :) typing and spelling are not the same brain activity for me .... even tho I got an 'A' in typing too..40 wpm

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