ABSTRACT
In the previous chapters we have considered various models of stationary competitive equilibria. In the last four of these chapters we have examined how the equilibrium would be affected by a change in consumers’ needs and tastes, and we have used these changes on the demand side as means of illustration of the problems of readjustment. But changes on the demand side are not the only changes which can disturb an equilibrium. Changes on the supply side are in fact probably of more importance in the real world. The purpose of this chapter is to examine the way in which a many-factor many-product economy of the type discussed in the last chapter might adjust itself to changes in the conditions of supply.
