Abstract
The persistent fluctuations of prices in selected agricultural markets have attracted the attention of economists from time to time, and the theory of the cobweb was developed to explain them. The theory is applicable to those markets where production takes time, where the quantity produced depends on the price anticipated at the time of sale and where supply at time of sale determines the actual market price.
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© 1991 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Pashigian, B.P. (1991). Cobweb Theorem. In: Eatwell, J., Milgate, M., Newman, P. (eds) The World of Economics. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21315-3_9
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DOI: https://doi.org/10.1007/978-1-349-21315-3_9
Publisher Name: Palgrave Macmillan, London
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