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1.2.7

1.2.7 Reflection Theme 1 

The purpose of a market

July 11, 2018August 31, 2018 admin market, market externalities, price mechanism, systems thinking

When we look at the economy as a system, markets are subsystems. From this perspective, the price mechanism describes how some elements of the market system interact with each other. But what is the purpose of a market? 

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1.2.7 Reflection Theme 1 

Excess supply of retail space

July 9, 2018August 31, 2018 admin excess supply, price mechanism

I have arrived at the price mechanism, how excess in demand drives prices up, and excess in supply drives them down – under normal circumstances and with everything else unchanged -, to end up at an equilibrium price and quantity cleared. But what happens to the excess supply, or the excess demand? 

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