Micro statics is the study of the static relationship between different variables.In fact,static situation refers to the situation of equilibrium.When the value of economic variable is related to the same point of time,the functional relationship between variable is said to be statics.Micro statics shows such static functional relationship.
Micro statics shows the relationship between different variables at a given time.In other words,Micro statics shows the equilibrium between different variable.It is assumed that there is no change in variable.For example,the price of a commodity is determines by the demand and supply.According to J.A.Schumpeter "Static analysis tries to established relations between elements of the economic system which refer to the same point of time."
The concept of micro statics has been illustrated is figure below.In the figure.DD and SS are demand and supply curves respectively.These curves interests each at pint.E so E the point of equilibrium.OP is the equilibrium price and OM is the equilibrium,quantity supplied and price refer to the same point or period of time.
Micro statics shows the relationship between different variables at a given time.In other words,Micro statics shows the equilibrium between different variable.It is assumed that there is no change in variable.For example,the price of a commodity is determines by the demand and supply.According to J.A.Schumpeter "Static analysis tries to established relations between elements of the economic system which refer to the same point of time."
The concept of micro statics has been illustrated is figure below.In the figure.DD and SS are demand and supply curves respectively.These curves interests each at pint.E so E the point of equilibrium.OP is the equilibrium price and OM is the equilibrium,quantity supplied and price refer to the same point or period of time.
Where is figure?
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