The necessary and sufficient condition for convergence is that the slope of the supply curve be greater than the absolute value of the slope of the demand curve. If the slope of the supple curve is less, then price and quantity diverge from equilibrium over time.
Partially out of boredom and partially because I was inspired by the movie title “Life of Pi”, I decided to make a monte carlo simulator that could approximate the value of pi. Monte carlo simulations are used in everything from derivative pricing to biology (and, in this case, boredom alleviation). Basically, it’s good for solving … Continue reading Monte Carlo Simulation of Pi