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The relevance of the leaders' power and interests on the firms' goal functions and their subsequently influences on prices and quantities supplied have been addressed previously by [8, 9, 10, 11, 12, 13].
All equations in the model are solved simultaneously to find an economy-wide equilibrium in which, at some set of prices, the quantities supplied and demanded are equal in all markets.
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Ho says BYD will explore the possibility of local manufacturing if the quantity supplied increases.
It slopes upward to indicate that the cost of supplying public-intellectual services increases with the quantity supplied.
It is not clear what is wrong with a "labour shortage" being resolved in the way that markets resolve other shortages: ie the price of labour goes up until quantity supplied matches quantity demanded.
Cobweb cycle, in economics, fluctuations occurring in markets in which the quantity supplied by producers depends on prices in previous production periods.
So, for example, if I ask how an excise tax will affect the price of coffee, I start by asking how that tax would affect the excess supply of coffee — the difference between the quantity of coffee demanded and the quantity supplied — holding the price constant; then I ask how much the price of coffee has to fall to eliminate that excess supply.
Notice that in that first step I am not forgetting that in the end the quantity of coffee demanded must equal the quantity supplied; I'm reasoning in the subjunctive, asking how the quantities would shift if it the price were temporarily held constant.
The measure of the responsiveness of supply and demand to changes in price is called the price elasticity of supply or demand, calculated as the ratio of the percentage change in quantity supplied or demanded to the percentage change in price.
In most cases, the supply curve is drawn as a slope rising upward from left to right, since product price and quantity supplied are directly related (i.e., as the price of a commodity increases in the market, the amount supplied increases).
Q t = S t if D t > S t this implies there is excess demand and quantity transacted in the market is equal to quantity supplied.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com