Skip to Main Content
Managerial Economics and Strategy, 2/e
book

Managerial Economics and Strategy, 2/e

by Jeffrey M. Perloff, James A. Brander
February 2016
Beginner to intermediate content levelBeginner to intermediate
500 pages
33h 40m
English
Pearson
Content preview from Managerial Economics and Strategy, 2/e

2.6 When to Use the Supply-and-Demand Model

As we have seen, the supply-and-demand model can help us to understand and predict real-world events in many markets. As with many models, the supply-and-demand model need not be perfect to be useful. It is much like a map. A map can leave out many details and still be very valuable—indeed, maps are useful in large part because they simplify reality. Similarly, the supply-and-demand model gains much of its power from its simplicity. The main practical question concerns whether the model is close enough to reality to yield useful predictions and conclusions. We have learned that the supply-and-demand model provides a very good description of actual events in highly competitive markets. It is precisely ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Managerial Economics

Managerial Economics

Vanita Agarwal
Managerial Economics

Managerial Economics

Donald N. Stengel
Principles of Managerial Finance, 15th Edition

Principles of Managerial Finance, 15th Edition

Scott B. Smart, Chad J. Zutter, Lawrence J. Gitman

Publisher Resources

ISBN: 9780134472553