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  • Collatz_problem [comrade/them]
    ·
    3 years ago

    It’s been mathematically proven for more than 40 years that the excess demand curve, which economists still believe always curves down, can curve back up and down again as price increases, which means there are possibly many price-quantity equilibria.

    Sonnenschein-Mantel-Debreu theorem?

      • adultswim_antifa [he/him]
        ·
        3 years ago

        The supply and demand curves are based on how individuals act, but combining them can produce complicated curves unless everyone has identical preferences and equal amounts of money and therefore all behave identically.

        • Spiderman [any]
          ·
          3 years ago

          Interesting, but I meant the specific thing you mentioned. Also I wonder how they factor in demand allowing for artificial scarcity and stuff like commodity fetishism reducing backlash to downsizing products in order to scrape out even more profits