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Tags

#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4

Question

Our system of equations requires explicit values for the [...] variables to find a unique equilibrium combination of price and quantity.

Answer

?

Tags

#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4

Question

Our system of equations requires explicit values for the [...] variables to find a unique equilibrium combination of price and quantity.

Answer

exogenous

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#### Parent (intermediate) annotation

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Note that our system of equations requires explicit values for the exogenous variables to find a unique equilibrium combination of price and quantity. Conceptually, the values of the exogenous variables are being determined in other markets, such as the markets

#### Original toplevel document

**3.6. Market Equilibrium**

Q x = 1 + 0.0002Q x and solved for equilibrium, Q x = 10,000. That is to say, for the given values of I and W, the unique combination of price and quantity of gasoline that results in equilibrium is (3, 10,000). <span>Note that our system of equations requires explicit values for the exogenous variables to find a unique equilibrium combination of price and quantity. Conceptually, the values of the exogenous variables are being determined in other markets, such as the markets for labor, automobiles, and so on, whereas the price and quantity of gasoline are being determined in the gasoline market. When we concentrate on one market, taking values of exogenous variables as given, we are engaging in what is called partial equilibrium analysis . In many cases, we can gain sufficient

Note that our system of equations requires explicit values for the exogenous variables to find a unique equilibrium combination of price and quantity. Conceptually, the values of the exogenous variables are being determined in other markets, such as the markets

Q x = 1 + 0.0002Q x and solved for equilibrium, Q x = 10,000. That is to say, for the given values of I and W, the unique combination of price and quantity of gasoline that results in equilibrium is (3, 10,000). <span>Note that our system of equations requires explicit values for the exogenous variables to find a unique equilibrium combination of price and quantity. Conceptually, the values of the exogenous variables are being determined in other markets, such as the markets for labor, automobiles, and so on, whereas the price and quantity of gasoline are being determined in the gasoline market. When we concentrate on one market, taking values of exogenous variables as given, we are engaging in what is called partial equilibrium analysis . In many cases, we can gain sufficient

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

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