Interpretations of Non-Market and Market Relationships in Relation to Sustainability

The only kind of relationships dealt with in neoclassical textbooks is market relationships and markets are interpreted mechanistically in terms of supply and demand. The focus is on one commodity at a time. This commodity is supplied by one or more firms and demanded by consumers. This is presented in diagrams with prices of the commodity on the vertical axis and quantity on the horizontal axis. It is argued that balance or equilibrium of price and quantity exchanged is reached where the total supply (from all firms producing the commodity) intersects with the total demand from all consumers (or others purchasing the commodity). The diagram refers to a point in time. The equilibrium may be disturbed by changes in demand, supply or both, and a new equilibrium point (price and quantity exchanged) will emerge. ¹