Market Adjustment and Investment Determination: A Theoretical Analysis of the Firm and the Industry

摘要

The purpose of the study is to examine a competitive market's adjustment to different types of shifts in factors exogenous to the market such as demand for output, supply of input, technology and interest rate. The study addresses a number of basic issues in economic analysis of market behavior for houses and housing services. Since a market adjusts through capital changes, the theory of adjustment might equivalently be interpreted as a theory of investment. The study covers both interpretations.