78 Sentences With "demand curves" | Random Sentence Generator

So utility managers use demand curves to anticipate the electric needs of their customers.

Economists' demand curves, utility functions and inflation rates are mere mental constructions or statistical oversimplifications.

"Those two overlaying demand curves are going to be right on top of each other," he said.

LBNL's research has revealed what shapes would appear in the demand curves of other regions in high-VRE scenarios.

Consider Uber—or rather, consider how Uber's database of customer information provides economists with a rare understanding of how demand curves work.

There's little discussion of supply and demand curves, of producer or consumer surplus, or other elementary concepts introduced in classes like Ec 103.

And the Texas Senate race has achieved some higher plane on which all the supply and demand curves intersect so as to continually kick Ted Cruz.

Most economics courses taken by first-year college students cover the textbook tools — supply and demand curves, the theory of comparative advantage, the analysis of profit maximization, and so on.

Students in Ec 10 are asked to plot supply and demand curves, to solve simple word problems about what happens when the mayor of Smalltown, USA, imposes a tax on hotel rooms.

They love to look at a huge, complicated mass of human behavior and reduce it to an equation: the supply-and-demand curves; the Phillips curve, which links unemployment and inflation; or mb = mc , which links a marginal benefit to a marginal cost—meaning that the fourth slice of pizza is worth less to you than the first.

In an oligopoly, firms operate under imperfect competition. With the fierce price competitiveness created by this sticky-upward demand curve, firms use non-price competition in order to accrue greater revenue and market share. "Kinked" demand curves are similar to traditional demand curves, as they are downward-sloping. They are distinguished by a hypothesized convex bend with a discontinuity at the bend-"kink".

However, if the externality arises on the consumption side, there will be two demand curves instead (private and social benefit). This distinction is essential when it comes to resolving inefficiencies that are caused by externalities.

Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the goods, the standard graphical representation, usually attributed to Alfred Marshall, has price on the vertical axis and quantity on the horizontal axis. Since determinants of supply and demand other than the price of the goods in question are not explicitly represented in the diagram, changes in the values of these variables are represented by moving the supply and demand curves . In contrast, responses to changes in the price of the good are represented as movements along unchanged supply and demand curves.

Consumers will be willing to buy a given quantity of a good at a given price, if the marginal utility of additional consumption is equal to the opportunity cost determined by the price—that is, the marginal utility of alternative consumption choices. The demand schedule is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time. While the aforementioned demand curve is generally downward-sloping, there may be rare examples of goods that have upward-sloping demand curves. Two different hypothetical types of goods with upward-sloping demand curves are Giffen goods (an inferior, but staple good) and Veblen goods (goods made more fashionable by a higher price).

In 1915, the Quarterly Journal of Economics published Wright's review of Economic Cycles: Their Law and Cause by Henry L. Moore, which included an early effort to estimate statistical demand curves. According to the law of demand, demand curves should show a negative relationship between price of a commodity and the quantity demanded. But in Moore's book, his statistical demand curve for one product, pig iron, infamously yielded a positive relationship between price and quantity. Moore tried to explain it as a new kind of demand curve, but Wright's review established that the positive slope could have been the result of a demand curve that was shifting to the right along a stable supply curve.

To maximise utility, a household should consume at (Qx, Qy). Assuming it does, a full demand schedule can be deduced as the price of one good fluctuates. Consumer theory uses indifference curves and budget constraints to generate consumer demand curves. For a single consumer, this is a relatively simple process.

Maskin E, Tirole J. A Theory of Dynamic Oligopoly, I: Overview and Quantity Competition with Large Fixed Costs. Econometrica 1988;56:549. Maskin and Maskin E, Tirole J. A Theory of Dynamic Oligopoly, II: Price Competition, Kinked Demand Curves, and Edgeworth Cycles. Econometrica 1988;56:571Maskin E, Tirole J. Markov Perfect Equilibrium.

The market demand curve is obtained by summing the quantities demanded by all consumers at each potential price, thus in the graph of the demand curve individuals' demand curves are added horizontally to obtain the market demand curve. The determinants of demand are: # Income. # Tastes and preferences. # Prices of related goods and services.

The model of supply and demand predicts that for given supply and demand curves, price and quantity will stabilize at the price that makes quantity supplied equal to quantity demanded. Similarly, demand-and-supply theory predicts a new price-quantity combination from a shift in demand (as to the figure), or in supply.

This means that demand curves may take on highly irregular shapes, even if all individual agents in the market are perfectly rational. In contrast with usual assumptions, the quantity demanded of a commodity may not decrease when the price increases. Frank Hahn regarded the theorem as a dangerous critique against mainstream neoclassical economics.

Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the goods, the standard graphical representation, usually attributed to Alfred Marshall, has price on the vertical axis and quantity on the horizontal axis, the opposite of the standard convention for the representation of a mathematical function. Since determinants of supply and demand other than the price of the goods in question are not explicitly represented in the supply-demand diagram, changes in the values of these variables are represented by moving the supply and demand curves (often described as "shifts" in the curves). By contrast, responses to changes in the price of the good are represented as movements along unchanged supply and demand curves.

This is posited to bid the price up. At a price above equilibrium, there is a surplus of quantity supplied compared to quantity demanded. This pushes the price down. The model of supply and demand predicts that for given supply and demand curves, price and quantity will stabilize at the price that makes quantity supplied equal to quantity demanded.

Firms operating as monopolies or in imperfect competition face downward-sloping demand curves. To sell extra units of output, they would have to lower their output's price. Under such market conditions, marginal revenue product will not equal MPP×Price. This is because the firm is not able to sell output at a fixed price per unit.

Standard consumer theory is developed for a single consumer. The consumer has a utility function, from which his demand curves can be calculated. Then, it is possible to predict the behavior of the consumer in certain conditions, price or income changes. But in reality, there are many different consumers, each with his own utility function and demand curve.

A demand schedule, depicted graphically as the demand curve, represents the amount of some goods that buyers are willing and able to purchase at various prices, assuming all determinants of demand other than the price of the good in question, such as income, tastes and preferences, the price of substitute goods and the price of complementary goods, remain the same. According to the law of demand, the demand curve is almost always represented as downward-sloping, meaning that as price decreases, consumers will buy more of the good.Note that unlike most graphs, supply & demand curves are plotted with the independent variable (price) on the vertical axis and the dependent variable (quantity supplied or demanded) on the horizontal axis. Just like the supply curves reflect marginal cost curves, demand curves are determined by marginal utility curves.

In microeconomics, joint product pricing is the firm's problem of choosing prices for joint products, which are two or more products produced from the same process or operation, each considered to be of value. Pricing for joint products is more complex than pricing for a single product. To begin with, there are two demand curves. The characteristics of each could be different.

This means that when the size of a tax doubles, the base and height of the triangle double. Thus, doubling the tax increases the deadweight loss by a factor of 4. The varying deadweight loss from a tax also affect the government's total tax revenue. Tax revenue is represented by the area of the rectangle between the supply and demand curves.

A standard demand curve showing that as prices decline, consumption rises. The price of a utility's products and services will affect its consumption. As with most demand curves, a price increase decreases demand. Through a concept known as rate design or rate structure, regulators set the prices (known as "rates" in the case of utilities) and thereby affect the consumption.

In human economics, a typical demand curve has negative slope. This means that as the price of a certain good increase, the amount that consumers are willing and able to purchase decreases. Researchers studying the demand curves of non-human animals, such as rats, also find downward slopes. Researchers have studied demand in rats in a manner distinct from studying labor supply in pigeons.

In other words, when the supply curve is more elastic, the area between the supply and demand curves is larger. Similarly, when the demand curve is relatively inelastic, deadweight loss from the tax is smaller, comparing to more elastic demand curve. A tax cause a deadweight loss because it causes buyers and sellers to change their behavior. Buyers tend to consume less when the tax raises the price.

He was born in Fort Collins, Colorado on February 5, 1895. Working earned his Ph.D. in Agricultural Economics from the University of Wisconsin–Madison in 1921. He taught at Cornell University and the University of Minnesota before he joined Stanford's Food Research Institute in 1925. His younger brother Elmer Working made a major contribution on the identification problem for demand curves in econometrics, with which Holbrook Working was also involved.

Electric utilities have discovered that this basic principle can save utility companies, and their customers, a significant amount of money. Utilities are able to shave the peak of their power demand curves by reducing the voltage across their distribution system. When a utility reaches a point where power demand is expected to exceed supply, utilities only have two options. Either purchase power from another utility, usually at substantial prices, or reduce demand.

It causes losses for both buyers and sellers in a market, as well as decreasing government revenues. Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade. In the graph, the deadweight loss can be seen as the shaded area between the supply and demand curves. While the demand curve shows the value of goods to the consumers, the supply curve reflects the cost for producers.

While the conventional theory of price discrimination generally assumes that prices are set by the seller, there is a variant form in which prices are set by the buyer, such as in the form of pay what you want pricing. Such user-controlled price discrimination exploits similar ability to adapt to varying demand curves or individual price sensitivities, and may avoid the negative perceptions of price discrimination as imposed by a seller.

Consumer demand theory relates preferences for the consumption of both goods and services to the consumption expenditures; ultimately, this relationship between preferences and consumption expenditures is used to relate preferences to consumer demand curves. The link between personal preferences, consumption and the demand curve is one of the most closely studied relations in economics. It is a way of analyzing how consumers may achieve equilibrium between preferences and expenditures by maximizing utility subject to consumer budget constraints.

In his 1870 essay "On the Graphical Representation of Supply and Demand", Fleeming Jenkin in the course of "introduc[ing] the diagrammatic method into the English economic literature" published the first drawing of supply and demand curves therein,A.D. Brownlie and M.F. Lloyd Prichard, 1963. "Professor Fleeming Jenkin, 1833–1885 Pioneer in Engineering and Political Economy", Oxford Economic Papers, 15(3), p. 211. including comparative statics from a shift of supply or demand and application to the labor market.

The intersection of the cost and demand curves at B determines how a given national income should (according to taxpayers' desires) be divided between social and private goods; hence, there should be OE social goods and EX private goods. Simultaneously, the tax shares of A and B are determined by their individual demand schedules. The total tax requirement is the area (ABEO) out of which A is willing to pay GCEO and B is willing to pay FDEO.

The key idea was that the price was set by the subjective value of a good at the margin. This was a substantial change from Adam Smith's thoughts on determining the supply price. In his 1870 essay "On the Graphical Representation of Supply and Demand", Fleeming Jenkin in the course of "introduc[ing] the diagrammatic method into the English economic literature" published the first drawing of supply and demand curves in English,A.D. Brownlie and M. F. Lloyd Prichard, 1963.

The philosopher Hans Albert has argued that the ceteris paribus conditions of the marginalist theory rendered the theory itself an empty tautology and completely closed to experimental testing.Fixing the Economists. 27 February 2014. Available at: Hans Albert Expands Robinson’s Critique of Marginal Utility Theory to the Law of Demand In essence, he argues, the supply and demand curves (theoretical functions which express the quantity of a product which would be offered or requested for a given price) are purely ontological.

Demand for an item (such as goods or services) refers to the economic market pressure from people trying to buy it. Buyers have a maximum price they are willing to pay and sellers have a minimum price they are willing to offer their product. The point at which the supply and demand curves meet is the equilibrium price of the good and quantity demanded. Sellers willing to offer their goods at a lower price than the equilibrium price receive the difference as producer surplus.

He was awarded a PhD in economics from Columbia in 1925 with a thesis entitled Estimation of Demand Curves, written under the supervision of Henry L. Moore. In 1926, Schultz went to the University of Chicago, where he spent the rest of his career teaching and doing research. In 1930, he was one of the sixteen founding members of the Econometric Society. Henry Schultz died on November 26, 1938, near San Diego, California, in a car accident that also killed his wife and his two daughters.

In perfectly competitive markets the demand curve, the average revenue curve, and the marginal revenue curve all coincide and are horizontal at the market-given price.The perfectly competitive firm's demand curve is not in fact flat. However, if there are numerous firms in the industry the demand curve of an individual firm is likely to be extremely elastic, for a discussion of residual demand curves see Perloff (2008) at pp. 245–246. The demand curve is perfectly elastic and coincides with the average and marginal revenue curves.

The demand for labour of this firm can be summed with the demand for labour of all other firms in the economy to obtain the aggregate demand for labour. Likewise, the supply curves of all the individual workers (mentioned above) can be summed to obtain the aggregate supply of labour. These supply and demand curves can be analysed in the same way as any other industry demand and supply curves to determine equilibrium wage and employment levels. Wage differences exist, particularly in mixed and fully/partly flexible labour markets.

The works and manuals of Vilfredo Pareto, Francis Edgeworth, Irving Fischer, and Eugene Slutsky departed from cardinal utility and served as pivots for others to continue the trend on ordinality. According to Viner, these economic thinkers came up with a theory that explained the negative slopes of demand curves. Their method avoided the measurability of utility by constructing some abstract indifference curve map. During the first three decades of the 20th century, economists from Italy and Russia became familiar with the Paretian idea that utility does not need to be cardinal.

Minneapolis Grain Exchange, circa 1939 The Minneapolis Chamber of Commerce was founded in 1881 as a market to trade grain. It helped farmers by ensuring that they got the best prices possible for their wheat, oats, and corn, since the usual supply and demand curves were skewed by similar harvest times across the region. In 1883, they introduced its first futures contract for hard red spring wheat. In 1947, the organization was renamed the Minneapolis Grain Exchange, since the term "chamber of commerce" had become synonymous with organizations that lobbied for business and social issues.

Sraffa (1925 in 1998, p. 324). The difficulties of the system that could, in short, be defined as the cross of the supply and demand curves firstly depend on the heterogeneity of the assumptions on which these two different tendencies are based. Decreasing returns and increasing costs are caused by the limited availability of some input which prevents all inputs from varying in optimal proportion. In other words, if an input is limited in quantity, a rise in production levels brings about a less efficient proportion among inputs with a fall in productivity.

Macroeconomics is the study of the factors applying to an economy as a whole. Influential economic factors include the overall price level, the interest rate, and the level of employment (or equivalently, of income/output measured in real terms). The classical tradition of partial equilibrium theory had been to split the economy into separate markets, each of whose equilibrium conditions could be stated as a single equation determining a single variable. The theoretical apparatus of supply and demand curves developed by Fleeming Jenkin and Alfred Marshall provided a unified mathematical basis for this approach, which the Lausanne School generalized to general equilibrium theory.

The Circular Flow published by Paul Samuelson in 1944 and the supply and demand curves published by William S. Jevons in 1862 are canonical examples of neoclassical economic models. Focused on the observable money flows in a given administrative unit and describing preferences mathematically, these models ignore the environments in which these objects are embedded: human minds, society, culture, and the natural environment. This omission was viable while the human population did not collectively overwhelm the Earth's systems, which is no longer the case. Furthermore, these models were created before statistical testing and research was possible.

The area represented by the triangle results from the fact that the intersection of the supply and the demand curves are cut short. The consumer surplus and the producer surplus are also cut short. The loss of such surplus that is never recouped and represents the deadweight loss. Some economists like James Tobin have argued that these triangles do not have a huge impact on the economy, but others like Martin Feldstein maintain that they can seriously affect long-term economic trends by pivoting the trend downwards and causing a magnification of losses in the long run.

The creation of the EU's Common Agricultural Policy was the trigger for the creation of modern Europe's large-scale intervention storage. In an attempt to stabilize markets, and set prices across the EU member states, the Common Agricultural Policy allowed the states to place huge reserves of produce into intervention storage in an attempt to flatten the natural supply and demand curves. During the 1980s, especially in Britain, the farming community received large monetary incentives to reduce production of certain crops. The establishment of milk quotas was one mechanism employed to enforce production limits on farmers.

This is true because each point on the demand curve answers the question, "If buyers are faced with this potential price, how much of the product will they purchase?" But, if a buyer has market power (that is, the amount he buys influences the price), he is not "faced with" any given price, and we must use a more complicated model, of monopsony. As with supply curves, economists distinguish between the demand curve for an individual and the demand curve for a market. The market demand curve is obtained by adding the quantities from the individual demand curves at each price.

Demand curves are explained by marginalism in terms of marginal rates of substitution. At any given price, a prospective buyer has some marginal rate of substitution of money for the good or service in question. Given the "law" of diminishing marginal utility, or otherwise given convex indifference curves, the rates are such that the willingness to forgo money for the good or service decreases as the buyer would have ever more of the good or service and ever less money. Hence, any given buyer has a demand schedule that generally decreases in response to price (at least until quantity demanded reaches zero).

If no minimum wage is in place, wages will adjust until quantity of labor demanded is equal to quantity supplied, reaching equilibrium, where the supply and demand curves intersect. Minimum wage behaves as a classical price floor on labor. Standard theory says that, if set above the equilibrium price, more labor will be willing to be provided by workers than will be demanded by employers, creating a surplus of labor, i.e. unemployment. The economic model of markets predicts the same of other commodities (like milk and wheat, for example): Artificially raising the price of the commodity tends to cause an increase in quantity supplied and a decrease in quantity demanded.

The "Law of Supply" states that, in general, a rise in price leads to an expansion in supply and a fall in price leads to a contraction in supply. Here as well, the determinants of supply, such as price of substitutes, cost of production, technology applied and various factors of inputs of production are all taken to be constant for a specific time period of evaluation of supply. Market equilibrium occurs where quantity supplied equals quantity demanded, the intersection of the supply and demand curves in the figure above. At a price below equilibrium, there is a shortage of quantity supplied compared to quantity demanded.

Moore made several errors in his work, some from his choice of models and some from limitations in his use of mathematics. The accuracy of Moore's models also was limited by the poor data for national accounts in the United States at the time. While his first models of production were static, in 1925 he published a dynamic "moving equilibrium" model designed to explain business cycles—this periodic variation from over- correction in supply and demand curves is now known as the cobweb model. A more formal derivation of this model was made later by Nicholas Kaldor, who is largely credited for its exposition.

This marginal external benefit of getting a smallpox shot is represented by the vertical distance between the two demand curves. Assume there are no external costs, so that social cost equals individual cost. If consumers only take into account their own private benefits from getting vaccinations, the market will end up at price Pp and quantity Qp as before, instead of the more efficient price Ps and quantity Qs. This latter again reflect the idea that the marginal social benefit should equal the marginal social cost, i.e., that production should be increased as long as the marginal social benefit exceeds the marginal social cost.

He used it as a part of the theory to explain demand curves and the principle of substitution. Marshall's scissors analysis – which combined demand and supply, that is, utility and cost of production, as if in the two blades of a pair of scissors – effectively removed the theory of value from the center of analysis and replaced it with the theory of price. While the term "value" continued to be used, for most people it was a synonym for "price". Prices no longer were thought to gravitate toward some ultimate and absolute basis of price; prices were existential, between the relationship of demand and supply.

He derived the first formula for the rule of supply and demand as a function of price and in fact was the first to draw supply and demand curves on a graph, anticipating the work of Alfred Marshall by roughly thirty years. The Cournot duopoly model developed in his book also introduced the concept of a (pure strategy) Nash equilibrium, the Reaction function and best-response dynamics. Cournot believed that economists must utilize the tools of mathematics only to establish probable limits and to express less stable facts in more absolute terms. He further held that the practical uses of mathematics in economics do not necessarily involve strict numerical precision.

The Sonnenschein–Mantel–Debreu theorem is an important result in general equilibrium economics, proved by Gérard Debreu, , and Hugo F. Sonnenschein in the 1970s. It states that the excess demand curve for a market populated with utility-maximizing rational agents can take the shape of any function that is continuous, has homogeneity degree zero, and is in accordance with Walras's law. This implies that market processes will not necessarily reach a unique and stable equilibrium point. More recently, Jordi Andreu, Pierre-André Chiappori, and Ivar Ekeland extended this result to market demand curves, both for individual commodities and for the aggregate demand of an economy as a whole.

The book strongly criticises many of the key ideas and assumptions of neoclassical economics. It argues that components of the theory such as demand curves, which are supposed to represent the aggregate behaviour of consumers, are theoretical constructs that have little empirical support. Keen questions the conventional theory of the firm, arguing that monopolies can have a useful role. He also revisits the Cambridge capital controversy of the 1960s to argue that ideas such as capital and profit are ill-defined. One of the book’s main critiques is that macroeconomic models or theories such as the efficient- market hypothesis rely on the assumption that the economy can be viewed as being at or near equilibrium.

Introductory microeconomics depicts a demand curve as downward-sloping to the right and either linear or gently convex to the origin. The downwards slope generally holds, but the model of the curve is only piecewise true, as price surveys indicate that demand for a product is not a linear function of its price and not even a smooth function. Demand curves resemble a series of waves rather than a straight line. The diagram shows price points at the points labeled A, B, and C. When a vendor increases a price beyond a price point (say to a price slightly above price point B), sales volume decreases by an amount more than proportional to the price increase.

Utility is usually applied by economists in such constructs as the indifference curve, which plot the combination of commodities that an individual or a society would accept to maintain a given level of satisfaction. Utility and indifference curves are used by economists to understand the underpinnings of demand curves, which are half of the supply and demand analysis that is used to analyze the workings of goods markets. Individual utility and social utility can be construed as the value of a utility function and a social welfare function respectively. When coupled with production or commodity constraints, under some assumptions these functions can be used to analyze Pareto efficiency, such as illustrated by Edgeworth boxes in contract curves.

Just as on the demand side, the position of the supply can shift, say from a change in the price of a productive input or a technical improvement. The "Law of Supply" states that, in general, a rise in price leads to an expansion in supply and a fall in price leads to a contraction in supply. Here as well, the determinants of supply, such as price of substitutes, cost of production, technology applied and various factors inputs of production are all taken to be constant for a specific time period of evaluation of supply. Market equilibrium occurs where quantity supplied equals quantity demanded, the intersection of the supply and demand curves in the figure above.

The primary action of buffer stocks, creating price stability, is often combined with other mechanisms to meet other goals such as the promotion of domestic industry. That is achieved by setting a minimum price for a certain product above the equilibrium price, the point at which the supply and demand curves cross, which guarantees a minimum price to producers, encouraging them to produce more, thus creating a surplus ready to be used as a buffer stock. The price stability itself may also tempt firms into the market, further boosting supply. The upside is security of supply (such as food security); the downside is huge stockpiles, or in other cases, destruction of commodities.

Knowledge has been argued as an example of a global public good,Joseph E. Stiglitz, "Knowledge as a Global Public Good" in Global Public Goods, but also as a commons, the knowledge commons. Aggregate demand (ΣMB) is the sum of individual demands (MBi) Graphically, non-rivalry means that if each of several individuals has a demand curve for a public good, then the individual demand curves are summed vertically to get the aggregate demand curve for the public good. This is in contrast to the procedure for deriving the aggregate demand for a private good, where individual demands are summed horizontally. Some writers have used the term "public good" to refer only to non-excludable "pure public goods" and refer to excludable public goods as "club goods".

To a logical purist of > Wittgenstein and Sraffa class, the Marshallian partial equilibrium box of > constant cost is even more empty than the box of increasing cost.Paul A. > Samuelson, "Reply" in Critical Essays on Piero Sraffa's Legacy in Economics > (edited by H.D. Kurz), Cambridge University Press, 2000 Aggregate excess demand in a market is the difference between the quantity demanded and the quantity supplied as a function of price. In the model with an upward-sloping supply curve and downward-sloping demand curve, the aggregate excess demand function only intersects the axis at one point, namely at the point where the supply and demand curves intersect. The Sonnenschein–Mantel–Debreu theorem shows that the standard model cannot be rigorously derived in general from general equilibrium theory.

In the mid-19th century, engineer Jules Dupuit first propounded the concept of economic surplus, but it was the economist Alfred Marshall who gave the concept its fame in the field of economics. On a standard supply and demand diagram, consumer surplus is the area (triangular if the supply and demand curves are linear) above the equilibrium price of the good and below the demand curve. This reflects the fact that consumers would have been willing to buy a single unit of the good at a price higher than the equilibrium price, a second unit at a price below that but still above the equilibrium price, etc., yet they in fact pay just the equilibrium price for each unit they buy.

When supply of a good expands, the price falls (assuming the demand curve is downward sloping) and consumer surplus increases. This benefits two groups of people: consumers who were already willing to buy at the initial price benefit from a price reduction, and they may buy more and receive even more consumer surplus; and additional consumers who were unwilling to buy at the initial price will buy at the new price and also receive some consumer surplus. Consider an example of linear supply and demand curves. For an initial supply curve S0, consumer surplus is the triangle above the line formed by price P0 to the demand line (bounded on the left by the price axis and on the top by the demand line).

In his book The Intellectual and the Marketplace, for instance, he proposed Stigler's Law of Demand and Supply Elasticities: "all demand curves are inelastic and all supply curves are inelastic too." The essay referenced studies that found many goods and services to be inelastic over the long run and offered a supposed theoretical proof; he ended by announcing that his next essay would demonstrate that the price system does not exist. Another essay, "A Sketch on the Truth in Teaching," described the consequences of a (fictional) set of court decisions that held universities legally responsible for the consequences of teaching errors.George J. Stigler, 1973. "A Sketch of the History of Truth in Teaching," Journal of Political Economy, 81(2, Part 1), pp. 491–95.

The only income distribution that is not permissible is a uniform one where all individuals have the same income and therefore, since they have the same preferences, they are all identical. For a while it was unclear whether SMD-style results also applied to the market demand curve itself, and not just the excess demand curve. But in 1982 Jordi Andreu established an important preliminary result suggesting that this was the case, and in 1999 Pierre-André Chiappori and Ivar Ekeland used vector calculus to prove that the Sonnenschein–Mantel–Debreu results do indeed apply to the market demand curve. This means that market demand curves may take on highly irregular shapes, quite unlike textbook models, even if all individual agents in the market are perfectly rational.

With Evan Hurwitz, Marwala was the first researcher to build software agents that are able to bluff on playing a game of poker. Tshilidzi Marwala and Evan Hurwitz in their book applied Lewis turning point theory to study the transition of the economy into automated production and identified an equilibrium point (Lewis turning point) where it does not make economic sense to move human labor to automated machines. Tshilidzi Marwala and Evan Hurwitz in their book observed that the advent of intelligent online buying platforms such as Amazon and technologies such as flexible manufacturing offers the opportunity for individualized supply and demand curves to be produced. They observed that these reduce the degree of arbitrage in the market, permit for individualized pricing for the same product and brings fairness and efficiency into the market.

Much of the success of Marshall's teaching and Principles book derived from his effective use of diagrams, which were soon emulated by other teachers worldwide.Cook (2005) Alfred Marshall was the first to develop the standard supply and demand graph demonstrating a number of fundamentals regarding supply and demand including the supply and demand curves, market equilibrium, the relationship between quantity and price in regards to supply and demand, the law of marginal utility, the law of diminishing returns, and the ideas of consumer and producer surpluses. This model is now used by economists in various forms using different variables to demonstrate several other economic principles. Marshall's model allowed a visual representation of complex economic fundamentals where before all the ideas and theories were only capable of being explained through words.

Labour demand curves slope down: everything else being equal, > higher wages reduce the quantity of labour employers demand. And fewer > people with jobs means less total income. If the theoretical point is clear > — and I’m not aware of a compelling theoretical argument suggesting that > employers will react to higher minimum wage by hiring more workers — the > empirical evidence is not. Other Canadian economists have supported minimum wage increases. David Green, a professor and director at the Vancouver School of Economics, has conducted extensive research on the minimum wage’s effects on the economy. In his work entitled “The Case for Increasing Minimum Wage”, Green presents a rebuttal to the critics of the minimum wage stating: > Claims that increases in the minimum wage will generate huge efficiency > costs for the economy and mass unemployment are not credible.

Negative supply shock The diagram to the right demonstrates a negative supply shock; The initial position is at point A, producing output quantity Y1 at price level P1. When there is a supply shock, this has an adverse effect on aggregate supply: the supply curve shifts left (from AS1 to AS2), while the demand curve stays in the same position. The intersection of the supply and demand curves has now moved and the equilibrium is now point B; quantity has been reduced to Y2, while the price level has been increased to P2. The slope of the demand curve determines how much the price level and output respond to the shock, with more inelastic demand (and hence a steeper demand curve) causing there to be a larger effect on the price level and a smaller effect on quantity.

The other line represents the effective supply of out-of-quota imports, extending from Q to infinity at the price 1 + T. The effect of a TRQ on trade is contingent on domestic demand for imports. The figure shows four possible demand conditions corresponding to demand curves numbered 1 to 4, which denote increasing levels of import demand. In the first case, demand is too low to generate imports at the world price, even without the in-quota tariff, so imports are zero (M1 = 0). In the second case, demand at the price 1 + t is sufficient to result in imports at the volume of M2, but the volume is not enough to cause the quota to bind (M2 < Q). In this case, the TRQ functions as an ordinary tariff being applied at the in-quota rate (t).

Speculators hope to make a viable play on a perceived growth in demand for lithium metal due to the widespread adoption of lithium batteries in emerging technologies. Lithium batteries have become a preferred power source for energy-hungry devices such as cell phones because they are more efficient and scalable than previous- generation nickel-metal hydride batteries thus they are in high demand in support of automobile and electronics manufacturing. Factors that could result in limitations affecting overall lithium supply are seen by some as prescient; with predicted supply chain volatility potentially overpowering other market factors and becoming the primary price driver, essentially resulting in a seller's market and thereby making the metal a profitable investment. However this model tends to disregard the influence of other factors outside basic supply/demand curves such as market regulation and the increased tendency for costlier components to be targeted for replacement by new technologies.

Market gardening has in recent decades become an alternative business and lifestyle choice for individuals who wish to "return to the land", because the business model and niche allow a smaller start-up investment than conventional commercial farming, and generally offers a viable market (in microeconomics basic or staple foods are considered as necessities and have highly inelastic demand curves meaning that consumers will buy them in relatively constant quantities even if prices or incomes vary), especially with the recent popularity of organic and local food. It is in some instances considered hobby farming, although market gardening is a recognized type of farming with a distinct business model that can be significantly profitable and sustainable. There is a spectrum with overlap from with the efforts of amateur gardeners who sometimes sell from home or at markets, as an extension of their pastime, to fully commercial market gardening as the main or sole income stream. The latter requires the most discipline and business sense.

In the 1982 book Handbook of Mathematical Economics, Hugo Sonnenschein explained some of the implications of his theorem for general equilibrium theory: A possible market demand curve according to the Sonnenschein–Mantel–Debreu results In other words, it cannot be assumed that the demand curve for a single market, let alone an entire economy, must be smoothly downward-sloping simply because the demand curves of individual consumers are downward-sloping. This is an instance of the more general aggregation problem, which deals with the theoretical difficulty of modeling the behavior of large groups of individuals in the same way that an individual is modeled. Frank Ackerman points out that it is a corollary of Sonnenschein–Mantel–Debreu that a Walrasian auction will not always find a unique and stable equilibrium, even in ideal conditions: Léon Walras' auction model requires that the price of a commodity will always rise in response to excess demand, and that it will always fall in response to a glut. But SMD shows that this will not always be the case, because the excess demand function need not be uniformly downward-sloping.