"I think it's useful to talk about equilibrium in a simple supply and demand framework, but only with the warning that the real world is often more complicated and dynamic. After all, Marx used supply and demand (without the graphs), seeing transitory equilibria as moving around the "centers of gravity" set by prices of production (which represent longer-term equilibria)."
May I have the page numbers for that? Marx argues that there is a tendency for an equalization of the profit rate over the short, medium or long term--he does not really specify. But even as he is showing the consequences of that process he at the time emphasizes the continuous reduction in unit values due to what economists call shifts in the supply curve. "In general, the world of capitalism is dynamic and never attains equilibrium (except for short-lived periods)." Agree "But it's useful to have some sense of what equilibrium would be if it were attained, as with Marx's volume II reproduction schemes." That may be true but I am interested in how we teach what the actual common responses to market disequilibrium actually are. And that's what I would really appreciate help with. Yours, Lakshmi
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