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ECONOMIC SUPPLY & DEMAND - MIT OpenCourseWare

D-4388 1 ECONOMIC SUPPLY & DEMAND by Joseph Whelan Kamil Msefer Prepared for the MIT System Dynamics in Education Project Under the Supervision of Professor Jay W. Forrester January 14, 1996 Copyright 1994 by MIT Permission granted to copy for non-commercial educational purposes 5 D-4388 3 Table of Contents 1. ABSTRACT 4 2. INTRODUCTION3. CONVENTIONAL SUPPLY AND DEMAND INTRODUCTION 6 DEMAND 6 SUPPLY 8 INTERACTION BETWEEN SUPPLY AND DEMAND 9 4. A SYSTEM DYNAMICS APPROACH TO SUPPLY AND DEMAND 12 INTRODUCTION 12 DEMAND 13 SUPPLY 15 INTERACTION BETWEEN SUPPLY AND DEMAND 18 5.

The supply and demand curves which are used in most economics textbooks show the dependence of supply and demand on price, but do not provide adequate information on how equilibrium is reached, or the time scale involved. Classical economics has been unable to simplify the explanation of the dynamics

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