Market theory - page 122
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
1. this is not only "an interesting optimization problem on the price elasticity of demand", but a major breakthrough in market knowledge, because in the millennial history of the market there has been no scientific basis for such a thing, as shown in the table and graphs, in any market theory, including the legacy of all Nobel Prize winners in economics, combined or individually. If I am wrong, please correct me.
Once the 1st point has been solved, the other 4 questions of yours turned out to be a mere trivial matter, which I solved in about half an hour.
OK. Explain who gets this profit which is price elastic?
OK. Explain who makes this profit, which is price elastic?
Profits are not price elastic. Profits have a complex dependence on the selling price of a product, depending on the type of market:
1. a monopoly market:
2. Competitive imperfect market:
3. A competitive perfect market with a single break-even level:
4. a special kind of competitive market:
5. A monopolistic market with a limited volume of goods:
The graph is a straight line with one break-even level.
By Monday, May 25, the market, as if by magic of a wand, was narrowed from 700 to 14 points, approached to the Zugzwang condition, the Bulls and the Bears were almost removed from the market, the Leo took over full power, going right down to the abscissa, having organized the 3rd, global, break-even level, whose theoretical possibility I pointed out earlier. This type of market is set up in exceptional cases, where there is a real threat of market and economic collapse. I haven't even coined a name for it yet, but it could be tentatively described as "ultra-monopolistic" or "state-owned". , "state", "emergency", "forced", "correcting errors and/or lapses in market, state or economic management" or something along those lines. I'll study the situation and come up with a proper and adequate, to the situation, name:
OK. Explain who gets this profit, which is price elastic?
This profit is elastic to the selling price of the product:
1. with negative elasticity for a competitive, price-elastic market;
2. with positive elasticity, for a monopolistic market.
Profit or loss is made by market players using or creating market imperfections. If the MO of estimated profit is zero, then, in general, market participants get zero from the market - some make a profit, others make a loss.
Let me show how accurately describes and analyzes the situation in the real market of goods and services, the algorithm that now analyzes the Forex market on the example of the analysis of individual entrepreneur's activity.
Suppose that the entrepreneur bought goods at a price of 100 dollars per unit for the purpose of selling them on the market (in a shop, in a supermarket, from hand-to-hand sales, ...). On the first day of trade, selling the product for $112 per unit, he made a profit of $5,9300. On the second day, raised the selling price to $118 and his income was only $8,800. Variable costs, including taxes, are 10% of income and fixed costs are $200 daily.
It is necessary to determine the entrepreneur's profit for 2 days of trade, the breakeven point, the marginal values of the purchase price, variable and fixed costs above which it is impossible to make a profit, analyse the market and determine the optimal selling price, which guarantees the maximum profit Pmax.
Here is how the algorithm solves this problem, after analyzing which no one will remain in doubt that the true market theory has indeed been found:
In the first part of the table, profit is defined as the difference between income and all kinds of expenses, and in the second part it is defined according to the new market theory. A complete overlap has been proven.
Dear Yusuf,
Explain the analogy between forex and the situation given by you - in your situation if I understand correctly the variable parameter is the resale price of the commodity - it's not clear what it is limited to - can I sell at 112 or 1112 ? what formula do you use to determine this constrain it ?
PS
Do you think your thoughts can be applied to the question of exchangers - forex in miniature - see
https://www.mql5.com/ru/forum/59858
Or rather, from 25 05 to 27 05. I will now check by repeating the calculations, perhaps the market was monopolistic in that period.
That's it. The reason is cleared up. On Friday, 22. 05. the pound market was a normal competitive market with two breakeven levels, located at a decent, or rather, at an unacceptable distance from each other (over 700 pips). The market, in those conditions, could be very volatile and cause serious damage to the economies of the Eurozone, especially the USA and/or Great Britain:
By Monday, 05/25, the market had just narrowed from 700 to 14 pips, approaching a Zugzwang, the Bulls and the Bears were almost out of the picture, the Leo took over and went down to the abscissa, establishing a third level, a global break-even, which I suggested was theoretically possible. This type of market is set up in exceptional cases, where there is a real threat of market and economic collapse. I haven't even coined a name for it yet, but it could be tentatively described as "ultra-monopolistic" or "state-owned". , "state", "emergency", "forced", "correcting errors and/or lapses in market, state or economic management" or something along those lines. I will study the situation and come out with a correct and adequate, to the situation, name:
Incidentally, this state of the pound/dollar market continues to this day.
How stupid everyone is here)
Yusuf has been trying to explain his innovative market theory for 100 pages, a breakthrough so to speak, and no one can understand)
And in general, I think you are bringing him down with your comments - the signals were generated when the bulls were chasing the bears in a sexual ecstasy, and vice versa, now when the lion is looking at someone unkindly, at this rate the zooorgia will soon be giving buy/sell signals.
Yusuf, I think you should reconsider and double-check everything yourself and take a time-out instead of rushing around redoing everything on the fly - this looks like some kind of adjustment for immediate results.
Unless, of course, you're making fun of everyone.)
This income is elastic to the selling price of the product:
1. with negative elasticity for a competitive, price-based market;
2. with positive elasticity - for a monopoly market.
Profit or loss is made by market participants using or creating market imperfections. If the MO of the calculated profit is zero, then, in general, market participants get zero from the market - some make a profit, others make a loss.
One thing left to do is to WAIT for the article... :-)
1. Gann Theory http://www.fxguild.info/content/view/446/36/, which is a product of practical study of pattern, price and time relations and how these relations affect the market.
2. Elliott Waves http://www.finam.ru/investor/library.../?material=462 where, by practical researches, Mr. Elliott came to a conclusion that any trend consists of the same repeating basic patterns (sections) which are divided into two types:
a. the impulse plot ("Impulse"), which consists of 5 segments and serves as the driving plot in the development of the trend;
b. a corrective segment ("Correction"), which consists of 3 segments and compensates for the preceding impulse movement.
3. Strategy based on the Ishimoku indicator https://ru.wikipedia.org/wiki/%D0%98...BE%D0%BA%D1%83. This strategy is connected with the concept of "Ishimoku cloud", which is the product of 30-year practical researches of the author.
They all have one thing in common - they all lack a solid theoretical basis indicating the connection to the process of real trading of goods and services, and are a product of practical researches and assumptions of their authors. Besides, they are permeated with one core, namely, understanding that there are some levels and forces influencing the character of price movement and the authors spent their life in feverish search of regularities of formation of the said levels and forces influencing the price, in their opinion. The application of the mentioned theories in trading practice led to variable success, however, due to the absence of more reliable theories, the researchers wanted to see only positive results and did not take into account conditionality of their application and real losses, explaining this fact by "incorrect" interpretation by a trader or by the costs of application of this or that theory.
Dear traders, I try to bring you the essence of the new market theory, free from the above-mentioned disadvantages, based on a strong theoretical foundation, which describes both the process of real commodity trading and Forex by the interaction of price with three virtual price levels, on which the best minds of mankind have devoted their entire lives, but, alas, have never found.
These levels are:
1.the level of the current Price, which, depending on the situation, can take the image of Bulls or Bears, and when the Market is in the image of Bulls, the Price takes the image of Bears and on;
2. a virtual price level, which is formed by the Market itself and which, as Price, depending on conditions, can assume the image of Bulls or Bears;
3. the virtual control level of the optimum market price - the Leo level;
4. a virtual control level of the average market price - the Leopard level.
As an example, see how, under the x-ray of the theory, the levels indicated are currently visible on the pound/dollar pair: