because demand curves and supply curves are always shifting, market can never attain equilibrium. does this im

Answer 1

I would disagree with your initial statement: the market can attain equilibrium. I would amend that if it does so, it does it either by accident or with a lucky guess.

When you begin to work for any sort of production firm, you will realize that spending resources trying to figure out the demand curve for a market (knowing your own supply curve), is futile and a waste of time and money. By the time you figure out your market's demand curve, it will have shifted, as there are undoubtedly hundreds if not thousands of variables and factors that will cause the curve to change. Attempting to solve the demand curve for one day will but insufficient knowledge for the demand curve the next day.

So producers will always be trying to guess with minimal resource exertion what the demand curve is for a given time period and supply accordingly. They will, statistically, be right only a very small fraction of the time. But sometimes, they will produce the exact right amount at the exact right price. Statistics dictates that this must happen sometimes.

I don't know what your actual question is, but I hope this helps.

Answer 2

Don't know what the question is but you are right to note that supply and demand curves are always shifting and that this causes problems for classical economics.

The "proofs" that a free-market always gives the "best" result relies on free markets clearing (i.e. reaching equilibrium) on price (rather than running out goods, etc.)

No real markets satisfy all the mathematical conditions, but some, such as the stock and bond markets, come fairly close. Economists argue that they come close enough to justify the conclusion.

On the other extreme, it takes so long to build new buildings, and there are so many external constraints, that no one really believes that the housing or office space markets ever attain long term equilibrium. In office space, you see continual boom/bust cycles as prices go up due to demand, many people start building new buildings, and the new buildings cause a glut.

Most products are somewhere in between, and no one really knows just how well the market is operating.

Answer 3

No, it relatively is genuine. Equilibrium in the theoretical or textbook experience never relatively happens yet relatively the industry "pushes" issues in direction of the equilibrium. in reality, it takes time to attain equilibrium even though it relatively is often changing. frequently, the markets continually carry approximately an result this is very on the factor of equilibrium yet won't in any respect precisely be there as long as somebody actor (individual, company etc) does not have suitable information (so it relatively is achieveable that they make a mistake), has a postpone in action, or there are transaction expenses.

Answer 4

Law of Conservation is the mother and Law of Equilibrium is the effect. The god has made this universe using two characters that are distinctly opposite. These two characters attract each other. The like ones repel each other. To list a few I would say : positive charge and negative charge, south pole and north pole, electrons and protons, OH and H, acids and bases, wants and means, demand and supply, male and female, etc. Wants repel wants and wants attract means. Similarly means repel means and means attract wants. According to Law of Conservation, the value of both wants and means or assets and liabilities or income and expnditure+savings or demand and supply remain equal. Wealth can neither be created nor be destroyed but can be changed from one form to another. This is the state of equilibrium. But this situation is a nightmare.
As wants and means tend to be equal, the economic activity increases leaps and bounds. In chemistry, monovalients are more active than di or trivalients because their electronic configuration is very near to that of inert gas(Inert gas have perfect equilibrium). The rich, who are nearer to equilibrium since their wants and means are near equal they are more active economically. The developed nations are nearer to equilibrium and they are more active economically than under developed countries. This is the resason that the richest is the most active in the world.

Answer 5

Picture a tightrope walker outside on a windy day. He's constantly balancing and his balancing pole is constantly on one side or the other to keep from falling.

So, can something be in constant motion and balanced at the same time? Equilibrium is a range.