Changing Production on the Market with Continuum Traders
DOI:
https://doi.org/10.15678/ZNUEK.2015.0940.0406Keywords:
economy with continuum traders, reduced consumption sphere, continuous trajectory of changes, projectionsAbstract
Assume that in a Debreu private ownership economy, all consumption sets are contained in a proper subspace of the commodity-price space. This property motivates producers to change their activities on markets to plans from the same subspace. Alterations in production take time, so to model changes occurring in the production sector of an economy, time should be involved. In contrast to the results I obtained from a 2010 study, in the economy with continuum traders, excluding a finite number of producers from the process that adjusts the economy to the given requirements does not disturb equilibrium. The aim of this paper is to present the possible trajectories of producers' activity changing their plans in the economy with continuum traders. The process of moving the production system and, consequently, the whole economy to an economy reduced to a given subspace will be elaborated. As a result, a system of economies in equilibrium dependent on time is presented.Downloads
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