New research challenges traditional equilibrium assumptions, reshaping economic models.
The article discusses how economists define equilibrium when there are restrictions on prices and quantities. They argue that in equilibrium, there should be at least one commodity that is not limited in supply. This helps prevent extreme scenarios where all goods are either completely unavailable or unwanted. Additionally, this approach reflects the real-world situation where money is rarely restricted in trade. The researchers suggest that choosing a specific commodity to never be constrained is important for a more accurate representation of economic equilibrium.