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Simultaneous Price and Quantity Adjustment in a Single Market
Martin J. Beckmann
Harl E. Ryder
Abstract
This paper discusses the dynamics of disequilibrium in a single market where both price and quantity change in response to disequilibrium. We describe the nature of the adjustment path under a wide variety of assumptions, noting in particular the properties of stability in the large and in the small and the existence of limit cycles.
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