Comparative statics

From Academic Kids

Comparative statics is the comparison of two different equilibrium states, before and after a change in one of the variables. Being a study of statics it compares two different unchanging points, once they have changed. It does not study the motion towards equilibrium, nor the process of the change itself.

It is one of the primary analytical methods used in economics, where it is very commonly used in the study of changes in supply and demand when analyzing a market.

See also

External links

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