THE TIME DIMENSION THE TIME DIMENSION • Short-run and long-run price adjustment Short-run and long-run price adjustment – short- and long-run demand and supply short- and long-run demand and supply curves curves – short- and long-run adjustment to a change short- and long-run adjustment to a change in demand in demand • Speculation Speculation – stabilising speculation stabilising speculation – destabilising speculation destabilising speculation • Uncertainty and risk Uncertainty and risk – defining risk and uncertainty defining risk and uncertainty – reducing risks by holding stocks reducing risks by holding stocks – futures markets futures markets
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THE TIME DIMENSION Short-run and long-run price adjustmentShort-run and long-run price adjustment –short- and long-run demand and supply curves –short-
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THE TIME DIMENSIONTHE TIME DIMENSION
• Short-run and long-run price adjustmentShort-run and long-run price adjustment– short- and long-run demand and supply curvesshort- and long-run demand and supply curves
– short- and long-run adjustment to a change in short- and long-run adjustment to a change in demanddemand