Full text: Price Takers' Plenty in a Model of Pure Capitalism.

5.17 
individual worker as well. 
More will be said on that later. 
Let rae now try to fit the model into the standard, symmetrically 
competitive model. That focuses on prices, the way they respond, and in their 
turn lead to changes in quantities; whereas I dealt with the direct response 
of one quantity to changes in another quantity and with all the nonprice 
variables at the price maker's disposal for influencing the quantities he 
sells and hopes to huy. The latter is a straight!orward extension 
of the customary approach, justified not so much by its added 
realism as by its enabling one to deal with a whole’ new class of 
valuable consumers' goods and services; the fringe benefits of 
competition. 
As to quantity adjustment in direct response to changes in other 
quantities, that belongs into a different category, being a short-run 
adjustment that runs parallel to adjustment via price changes; and it 
becomes a prompt and useful substitute for adjustments via price changes 
when those are impeded by the stickiness of prices. Bear in mind 
how indirectly, through the intervention of how many markets, the 
equilibrating forces of a general equilibrium system are supposed 
to work: and compare that to the simple and direct motivation price- 
maker employers have to maintain or increase employment. fly examples 
were simplified by the assumption of fixe 
realistic enough; though more generally, 
and long-run adjustment via price changes 
d wages and that seemed 
short-run quantity adjustment 
may complement each other.
	        

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