Economics of dating supply and demand publicly traded online dating companies

04-Aug-2019 07:42

Here we suppose that the price is determined by the forces of demand and supply which belong to the same time period.

Price, demand and supply refer to the same time period.

The determinants of demand and supply are supposed to be constant in static economics.

Under perfect competition, price is determined by the forces of demand and supply.

(v) No change in the habits, tastes and fashions of the people i.e. Static economics occupy an important role in economics. Harrod, “Statics will remain an important part of the whole economics.” We can explain the importance and scope of static economics as under: 1.

It is the simple and easy method of economic analysis. The principle of free trade which was favoured by classical economists like Adam Smith is an integral part of static economics. Robbins’ definition is also the subject matter of static economics. Static economics gives knowledge of the conditions of equilibrium. Hicks has pointed out that static economics occupies an important role because it gives a lot of information for the proper understanding of dynamic economics. It shows only a once-over change of variables like consumption function, multiplier, liquidity preference, etc. Clark and Stigler have assumed many economic variables as constant.

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The word ‘static’ has been taken from physical science. In other words, by static is meant a position where there is the absence of any movement.

And comparative statics compares only the two final equilibrium states.

It does not show how this new equilibrium has been reached.

In economics, the concept of static refers to a situation where there is a movement.

But this movement is continuous, certain, regular and constant.Static economics does not deal with the unexpected changes. There are no windfall changes or fluctuations in economic activities. Harrod, “An economy in which rates of output are constant is called static.” Economic activities are repeated in different time periods in a static economy. For example, India’s national income increased by 5% in 1977-78. The study of national income is called a static analysis because the rate of increase in national income is the same.

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