Is there any significant about a supply/demand curve having 2 points of y values for every x value? are you limited in the kinds of operations you can do? thanks very much

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- September 13th 2011, 10:52 PMmathnerd15properties of supply demand curves
Is there any significant about a supply/demand curve having 2 points of y values for every x value? are you limited in the kinds of operations you can do? thanks very much

- September 16th 2011, 08:48 PMmathnerd15Re: properties of supply demand curves
these curves don't seem really rigorous in their use of variables x,y-

what are the functions normally used to model these situations?

for Qd it seems that at higher prices the rate of change would be greater and the curve would level out near the bottom?

but linear techniques would be useful in some situations?

thanks very much - September 17th 2011, 11:27 AMSpringFan25Re: properties of supply demand curves
im afraid i dont see how your second post relates to your first one.

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Is there any significant about a supply/demand curve having 2 points of y values for every x value?

*drop*in the amount of time a worker is prepared to work.

If i remember correctly it is caused by the interaction of income and substitution effects as price increases. Intuitively, if you offer somone £1 million per hour, then they will only work a very short amount of time and use the rest of the time to spend/enjoy the money.

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are you limited in the kinds of operations you can do? thanks very much

curves can be added along the quantity axis. This is the only operation i have ever had to do with them, but others may be possible. - September 17th 2011, 12:18 PMmathnerd15Re: properties of supply demand curves
thanks for your post

like the market graph can be the summation of the graphs of individual buyers- eg linear functions for individual buyers can be added which results in another linear function with lesser slope

well I'm asking about the process of modeling economic situations- it seems that in reality the functions used to describe price and quantity or wages wouldn't be static or linear

say you have a price/quantity graph for a good, would the curve be concave up as the derivative is steeper for higher price?

when you have a more complex situation with more variables and want to calculate equilibrium do you use matrix techniques? and you would use partial derivatives to find rates of change? - September 17th 2011, 02:01 PMSpringFan25Re: properties of supply demand curvesQuote:

it seems that in reality the functions used to describe price and quantity or wages wouldn't be static

I dont know what happens in practice. in theory you can define neat looking demand curves using utility theory but these generally require strong assumptions about the customer's exact preferences.

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when you have a more complex situation with more variables and want to calculate equilibrium do you use matrix techniques?

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and you would use partial derivatives to find rates of change?

*total revenue*rather than*average revenue per unit*.

**PS**Good questions!