From Cambridge to Eternity: “Variation vs Change 02”
Imagine, as opposed to realizing, the time arrives in the widget market of Mini-polis in the beginning of May 2036. As usual in the market, the “unit of account” is the thaler ; the medium of exchange is thaler bills, solid or “thin-airy” but never fluid. We knew as of yesterday: Demand in April was p= -2 ∙ q+47 (in thalers ) and supply p=1 ∙ q+ 2 (in thalers ); Quantity traded q=15 units of “real” widget and the “equilibrium price” p= 17 bills of the “nominal” thaler . Fractions of widget, if any, were all gone irrelevant. Looking ahead through the accounting month of May, we expect that the demand for widget will sky-rocket due to “ Extraordinary Popular Delusions ” so as approximately to appear like p= -2∙q+347 (in thalers ), ceteris paribus . Over-time Change. Laissez faire , the equilibrium as to be accounted for on May 31 st will be at 115 units and 117thalers . Realis...