Spider web-like  model with delayed demand

The conceptual model of any process of price dynamics includes the interaction of three subsystems, which can be conditionally called “commodity producer”, “consumer” and “market” (Fig.7.17.). The spider-like model (model A), in which demand lags behind supply by one period: D(Pt+1)=S(Pt), also fits into the scheme of Figure 7.17. Rice. 7.17. Conceptual scheme of the […]