The Cobweb and Other Simple Dynamic Models

Abstract

Economics is concerned with quantities of goods or factors and their prices. Goods or factors are bought and sold on markets ; one group of persons or organisations is buying, another group is selling on each market. In this chapter, a market for a particular good or factor is considered and the only aggregation is of buyers into a group and of sellers into a group. Further aggregation, over different goods or factors and over different markets, is left for later chapters. Such aggregation, which raises problems of valuation, of summing the products of quantities and prices, is best avoided in a first analysis.