In theory, in a free market the external factors, the equilibrium price may be unaffordable for many who desire it but cannot pay for it.
32.
On the other hand, a decrease in technology or increase in business costs will decrease the quantity supplied at each price, thus increasing equilibrium price.
33.
General equilibrium theory both studies economies using the model of equilibrium pricing and seeks to determine in which circumstances the assumptions of general equilibrium will hold.
34.
Calculating the equilibrium price of just one good, in theory, requires an analysis that accounts for all of the millions of different goods that are available.
35.
As a result of active repurchasing or issuing of shares by company managements, equilibrium pricing is no longer a result of balancing shareholder demand and supply.
36.
In particular, some economists have developed models in which agents can trade at out-of-equilibrium prices and such trades can affect the equilibria to which the economy tends.
37.
Such arguments are inadequate for non-linear systems of equations and do not imply that equilibrium prices and quantities cannot be negative, a meaningless solution for his models.
38.
He focuses on business cycles and asset pricing, with a particular emphasis on the real side of the economy s impact on equilibrium pricing of financial assets.
39.
The nonstandard equilibrium prices for exchange can be determined for lexicographic order using standard equilibrium methods, except using nonstandard reals as the range of both utilities and prices.
40.
Likewise supply is determined by firms maximizing their profits at the market price : no firm will want to supply any more or less at the equilibrium price.
