Some critics have argued that this economist’s correspondence principle between comparative statics and the dynamics of equilibria only holds when the equilibria are locally stable. For 10 points each:
[10h] Name this economist, the author of Foundations of Economic Analysis. A theory named for Wolfgang Stolper and this economist relates the factor price frontier to the production of capital-intensive goods.
ANSWER: Paul Samuelson [or Paul Anthony Samuelson]
[10m] A variable described by this adjective changes between the first and second state of a comparative statics analysis. A variable described by this adjective is determined outside of the model.
ANSWER: exogenous variable
[10e] Comparative statics is often used to show changes in these two quantities in a single market. In a competitive market, the intersection of these two quantities is used to determine the market equilibrium.
ANSWER: supply AND demand [prompt on partial answers]
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