 learners, I welcome you on the market mechanism. This chapter is included in your first semester economics paper that is introduction of economic theory 1. In this class, this is the broad syllabus which I am going to discuss in this class. At first I will start with demand supply framework that is Sahida, Jhugan or Gothan Next I will meaning of demand Sahida or Gotha, Tarpasad law of demand Sahida Vidhi, Tarpasad I will discuss law of supply, Jhugan Vidhi. Then we will discuss about concept of equilibrium or third, Bharat Hamotar Dharana. Next market equilibrium or third, Bazar Bharat Hamotar. Next I will discuss some static analysis. So, first I will start with demand supply framework. So, what is demand? Basically demand is a desire for a commodity which must be supported by its purchasing power. In other words, in economics to create demand by a consumer he has to satisfy two aspects. The first one is he has the desire to purchase that particular commodity and secondly he must have that purchasing power. Thus, let us now discuss the second aspect of demand supply framework. So, we can explain it with the help of a very simple example. Suppose, if I am giving an example of consumer A, consumer A wants to purchase a mobile handset that cost around 10000 rupees. Now if consumer A has that amount of purchasing power that means if he has the ability to pay 10000 rupees for purchasing that particular mobile handset, then only he can create demand for that particular commodity. Now based upon those things there is a famous law in economics which is known as the law of demand. So what is law of demand? I am going to call it as Sahida Bidhi. What is Sahida Bidhi? Sahida Bidhi often says that other things remaining unchanged that demand for a commodity and its price are always inversely related. So, in the last three years, some of the other things have been changed and some of the other things have been changed. So, in the last three years, some of the other things have been changed and some of the other things have been changed. But next I will talk about supply. What is supply? Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. That means there is a basic difference between total supply and total production. Total production may not be equal to total supply. The total supply means that part of production which is available in the market for consumers. Now, like the law of demand, there is also a famous law that is known as supply of law of supply. The law of supply states that the price and the supply of the commodity are directly related. So, in the last three years, the demand for a commodity was less than the demand for a commodity. So, the demand for a commodity was less than the demand for a commodity. So, what I will do after this? I will talk about the equilibrium and market equilibrium in the next period. the concept of equilibrium and market equilibrium. The equilibrium, to explain equilibrium in a simple language, equilibrium is a state of rest where there is no tendency to change. So, according to one of the famous economics, G. J. Stigler, a equilibrium is a position from which there is no tendency to move. That means, if a economic essence or a aggregate of economic essence reach the point of equilibrium, he will not show any willingness to change his position. Now, the term market equilibrium represents a balance among different buyers and sellers. Now, what is the basic condition for market equilibrium? As we have already discussed, the concept of demand and supply, a market is in simple language, a market is in equilibrium when demand for a commodity or demand for a factor of production is equal to supply of that particular commodity or supply of that particular factors of production. Now, what is this equilibrium? That means this equilibrium is a position when a consumer deviates from the point of equilibrium. Now, as I have already told you that a market is in equilibrium when demand is equal to supply. Now, if for the time being, if I am assuming that demand is greater than supply, so what will happen? That means, there is a problem of excess demand. Then what will happen? When there is excess demand, the price will increase and ultimately it will bring a balance between demand and supply. Similarly, what happen when there is a when there is supply is higher than supply is greater than demand, then what will happen? Price will fall down and ultimately it will bring to the point of equilibrium. So, next we will study about the different types of equilibrium. The first we will start with static equilibrium or what is static equilibrium? Static equilibrium means when two economic agents or aggregate economic agents reach the point of equilibrium when we ignoring the another variable or another factor that is time. That means in case of static equilibrium, we are not considering the external variable that is time. For example, if I am saying that in case of law of demand, it establishes a relationship between price and demand. It implies that we are not considering the price of a particular commodity at a particular time or we are not considering the demand of a particular commodity at a particular time. That means we are ignoring the time element in case of static analysis and static analysis is very popular in economics. It occupies an important place in economic theory as well as in analysis. So, next I will sum the comparative static. Comparative static is a determination of the change in the endogenous variable of a model that will result from a change in the exogenous variables or parameter of that model. Comparative static analysis is to come up a kick city hill. Now, what is advantages means any variable define a particular variable and if they define one phenomenon, then what is advantage means So, endogenous means any variable defined within the model and what is exogenous refers to a constant term or parameter which value is already defined outside the model. So, like static analysis comparative static analysis is also very popular in economics. So, one of the classic example of comparative static analysis is I think all of you know the ISLM model. That means the ISLM model basically is a classic example of comparative static analysis where ISLM model try to explain the equilibrium in both money and product market. As I have already told you the classic example of comparative static analysis is the ISLM model where IS curve explain the equilibrium in the product market and LM curve explain the equilibrium in the money market. So, another classic example of comparative static analysis is the Keynesian model which is also very popular in economics. So, dynamic analysis is also very popular in contemporary economics. So, it was professor Ragnar Frins which is considered to be the pioneer who introduced the concept of dynamic analysis in economics. Now dynamic means we are considering the time variable. So, in case of static analysis we are ignoring the time variable, but in case of dynamic variable what we did we basically introduce the time variable. Now, if I am giving the example of static analysis what happen in case of static analysis if I am saying that I am trying to establish a relationship between price and demand then we are not saying that price for a particular time period. For example, if I am saying that the price of a commodity at t and the demand for a commodity for the time period t minus 1. So, those kind of relationship can be explained with the help of dynamic analysis. In other words economic dynamics considers the relationship between relevant variables whose values belongs to different points of time. A system is dynamic if its behavior of our time is determined by functional equation in which variables at different points of time are involved in an essential way. So, like static and dynamic static and comparative static analysis dynamic analysis also occupies a very important place in economics. So, these are the things I want to discuss in this class. So, initially we discussed about demand supply framework then we discussed about the concept of equilibrium or that Vara Hamata or Dharana. Next the market equilibrium Bazar Vara Hamata. Next the static equilibrium Steeley Hill Bishlekhon then comparative static analysis or third up a kick Steeley Hill Bishlekhon and last, but not the least dynamic analysis or third Gotihill Bishlekhon. So, I believe that you got some ideas about market mechanism for my class. Thank you for attending my class. Thank you again.