Saturday, April 30, 2011

Rewrite Walras' Law for economics

A market for a particular commodity is in equilibrium if, at the current price of the commodity, the quantity of the commodity demanded by potential buyers equals the quantity supplied by potential sellers. Wiki

The law of equilibrium does not include sellers who purchase their own stuff. Let's include buyers of one's own stuff and rewrite:

Goods into the market equals goods out of the market plus wastage.  Once again dumping the supply/demand thing. We get conservation of goods.  Now we can consider the condition in which sellers take more to market than they sell, bringing the excess back to the shop.  If the queue sizes drop for deliveries at the market then the market will open less frequently and quantities sold will increase.

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