To look at this from a historical perspective, it’s really not so new. If you look at the 1920s, the technological question in the ’20s was, “How can we build a business model around broadcast radio?” And no
Howcanweconstructaninsightfulmodeltoanswerthesequestions? * EconomicModelingAssumptions Twobasicpostulates: RationalChoice:Eachpersontriestochoosethebestalternativeavailabletohimorher. Equilibrium:Marketpriceadjustsuntilquantitydemandedequalsquantitysupplied. * ModelingApartmentDemand Demand:Supposethemostanyonepersoniswill...
How can we construct an insightful model to answer these questions?,13,Economic Modeling Assumptions,Two basic postulates: Rational Choice: Each person tries to choose the best alternative available to him or her. Equilibrium: Market price adjusts until quantity demanded equals quantity supplied.,14...
Howcanweconstructaninsightful modeltoanswerthesequestions? 13 EconomicModeling Assumptions Twobasicpostulates: – RationalChoice:Eachpersontries tochoosethebestalternative availabletohimorher. – Equilibrium:Marketpriceadjusts untilquantitydemandedequals quantitysupplied. 14 ModelingApartmentDemand Demand:Supposethemo...