Is an important factor of dynamic analysis. Atatic demand time element?
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relate to the same point of time or to the same period of time, the analysis is said to be static. In other words, the static analysis or static theory is the study of static relationship between relevant variables.
A functional relationship between variables is said to be static if the values of the economic variables relate to the same point of time or to the same period of time. Numerous examples of static relationships between economic variables and the theories or laws based upon them can be given. Thus, in economics the quantity demanded of a good at a time is generally thought to be related to the price of the good at the same time.
Accordingly, the law of demand has been formulated to establish the functional relationship between the quantity demanded of a good and its price at a given moment of time. This law states that, other things remaining the same, the quantity demanded varies inversely with price at a given point of time. Similarly, the static relationship has been established between the quantity supplied and the price of goods, both variables relating to the same point of time. Therefore, the analysis of this price-supply relation
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