Return to Price-Taking Behavior at the New Market Equilibrium
Once a new market equilibrium is established after a shock, the incentive for price-making disappears. Both buyers and sellers revert to being price-takers, as no single participant can benefit by trading at a different price. This new state of equilibrium persists until the market is disturbed by another shock.
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Introduction to Microeconomics Course
CORE Econ
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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