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anonymous
 5 years ago
why a linear fucyion may not be adequate for describing the supply and demand fuctions?
anonymous
 5 years ago
why a linear fucyion may not be adequate for describing the supply and demand fuctions?

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amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0lol.... becasue most people are slewed ;)

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0skewed... ruined a perfectly good bit with a typo...

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0the economies of scale is a good reason; it is not linear and it affects supply and demand

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0keynesian economics says that the supply curve is linear and then bends up at the Nrgdp

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Linear with respect to what?

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0linear with respect to supply and demand :)

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0the 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
 5 years ago
Best ResponseYou've already chosen the best response.0but 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
 5 years ago
Best ResponseYou've already chosen the best response.0there can also be a max or min at which the curves turn back on themselves and its refered to as laffers curve

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Laffers curve refers to tax revenue rates.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0tax rates follow a laffer curve; but laffers curve is a generality of many circumstances

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Explain how it relates to supply, demand, and price.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0lol.... 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
 5 years ago
Best ResponseYou've already chosen the best response.0Laffers 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
 5 years ago
Best ResponseYou've already chosen the best response.0laffers curve is a description of human behavioural outputs given circumstances; it isnt a set in stone device ..

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0tax rates are a model of laffers curve; not the result of it.... casue and effect..cause and effect

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Tax 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
 5 years ago
Best ResponseYou've already chosen the best response.0if 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
 5 years ago
Best ResponseYou've already chosen the best response.0laffers curve demonstrates the human behaviour is not linear lol

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0I'm trying to figure out anything remotely close to linear with respect to supply, demand, and price.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0the natural Rgdp is a vertical line in the long run supply curve ;)

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Rgdp is not familiar to me.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0the supply curve modeled by keynesian is horizontal at points to indicate the inelasticity of price to drop

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0real gross domestic production

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0at natural Rgdp you are producing as much as you can with the resources available...

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0supply can only be a vertical representation then; the short run supply curve is skewed, but eventually settles into the long run

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0if we are producing/supplying all we can ; then a raise in price doesnt equal a raise in supply ..

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0if 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
 5 years ago
Best ResponseYou've already chosen the best response.0This is a math forum. A vertical line approached asymptotically does not make the function that approaches it linear. Anything but.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0a vertical line is a line lol; its called x = Nrgdp

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0the slope of the line is undefined; but the line exists

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Not all lines represent linear functions. This one doesn't.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0well, if we want to get technical about the term 'function' then id have to agree ;)

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0This 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
 5 years ago
Best ResponseYou've already chosen the best response.0So my response to the longago question would be, what exactly is the function you're hoping to represent linearly? I haven't heard that yet.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0i 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
 5 years ago
Best ResponseYou've already chosen the best response.0Since 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
 5 years ago
Best ResponseYou've already chosen the best response.0Do you teach economics somewhere? You spelling suggests you are not in the United States.

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0teach? 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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