Abstract
The maintenance of output-equilibrium by a set of economic systems, or the adaptation of supply to demand, is a subject extensively discussed in economics. To a first approximation, classical theory is not interested in the dynamics of such a process, but in equilibrium states. Because supply is an increasing function of price and demand a decreasing function, price variations and the resulting entering and leaving of the market by customers and suppliers cause equilibrium: if supply exceeds demand, the price goes down, some suppliers leave and some customers enter until equilibrium is reached. If supply is too low, the reverse happens.
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© 1978 H. E. Stenfert Kroese B.V.
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Van Aken, J.E. (1978). The Dynamics of a Network of Demand Servos. In: On the control of complex industrial organizations. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-7540-5_8
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DOI: https://doi.org/10.1007/978-1-4615-7540-5_8
Publisher Name: Springer, Boston, MA
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