Sonnenschein-Mantel-Debreu Theorem: Aggregate Demand Limits
Sonnenschein-Mantel-Debreu theorem analysis shows why rational individual demand does not guarantee stable, unique, or well-behaved aggregate demand.
microeconomics
Stability of General Equilibrium: Price Convergence
Stability of general equilibrium explains when price adjustment converges toward market clearing and when cross-market feedback prevents convergence.
Existence of Competitive Equilibrium: Fixed Point Logic
Existence of competitive equilibrium explains how fixed point logic proves that market-clearing prices can exist under suitable general equilibrium assumptions.
Excess Demand Function: Market Pressure
Excess demand function analysis measures shortage, surplus, and market-clearing pressure across connected markets in general equilibrium.
Tatonnement Process: Price Adjustment Toward Equilibrium
Tatonnement process analysis explains how prices adjust to excess demand and why equilibrium stability requires more than market-clearing existence.
Walras law: Market Excess Demands Balance
Walras law shows why the value of excess demand across all markets must balance when agents obey budget constraints.
Ridge Lines Isoquant: Economic Region of Production
Ridge lines isoquant analysis separates the economic region of production from wasteful input combinations where labor or capital has negative...
Public Goods vs Private Goods: Rivalry, Excludability, Free-Rider Problem
Rivalry and excludability separate public goods vs private goods, and the free-rider problem explains why markets undersupply non-excludable goods that...
Positive Externality Diagram: Subsidies and Underproduction
The positive externality diagram shows how markets underproduce vaccinations, education, and research, and how a per-unit subsidy at marginal external...
Private Cost and Social Cost: Externality Curves Explained
Private cost is what firms pay; social cost adds the spillovers they ignore. The MPC, MSC, and MSB curves explain...