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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Demand and supply functions are known as [...] equations because they model the behavior of, respectively, buyers and sellers.

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Demand and supply functions are known as [...] equations because they model the behavior of, respectively, buyers and sellers.
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Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Demand and supply functions are known as [...] equations because they model the behavior of, respectively, buyers and sellers.
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behavioral equations because they model the behavior of, respectively, buyers and sellers.

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3.6. Market Equilibrium
the supply function and solving for price. Recall that in our hypothetical example of a local gasoline market, the demand function was given by Qdx=f(Px,I,Py) , and the supply function was given by Qsx=f(Px,W) . Those expressions are called <span>behavioral equations because they model the behavior of, respectively, buyers and sellers. Variables other than own price and quantity are determined outside of the demand and supply model of this particular market. Because of that, they are called exogenous variables . Pric

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