Mathematical model of a competitive market with stocks.
Equilibrium and stability are the most frequently investigated properties in the market equilibrium models. On global and local markets we usually observe the lack of equilibrium. Nevertheless, the original model does not consider the possibility of stocks. However, we observe this situation, when there exists an excess supply. We should consider then how the accumulated stocks affect the equilibrium (or disequilibrium) and the stability of the model. During the seminar I will present the competitive economy model and the model with stocks. I will explore how these stocks influence the path of the price trajectory, equilibrium conditions and price stability.