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What is Dynamic Model of Demand and Supply about?

The document summarizes an article that develops a dynamic model of demand and supply. It extends classical economic theories, which provide a static approach, by incorporating the real-world impacts of inventory levels. The dynamic model introduces inventory levels and their effect on price into the demand and supply curves. It also addresses how inventory surpluses or deficiencies impact price setting by manufacturers. The model generates new curves to represent the demand, supply, and price relationships

Author

cannaizer

Language

EN