2 ms·
I was referring to perfect market competition: https://en.wikipedia.org/wiki/Perfect_competition https://en.wikipedia.org/wiki/Perfect_competition [1] And I s
by mrkramer 6y ago
I was referring to perfect market competition:
https://en.wikipedia.org/wiki/Perfect_competition https://en.wikipedia.org/wiki/Perfect_competition [1]
And I said money supply depends on market activity meaning only scenario where would amount of money be constant is perfect market competition(quantity demanded and quantity supplied are equal) but perfect market competition does not exist in reality.
It is also called Market equilibrium: "in this case is a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers." [2]
[1] https://en.wikipedia.org/wiki/Perfect_competition https://en.wikipedia.org/wiki/Perfect_competition
[2] https://en.wikipedia.org/wiki/Economic_equilibrium https://en.wikipedia.org/wiki/Economic_equilibrium