The basic equation of biological and economic life is one of limited supply of necessary goods and competition for those goods. Just as biological entities compete for limited usable energy, so too do economic entities compete for limited customer wealth and limited demand for their products. The point at which supply and demand for a given good are equal is called an equilibrium; however, in practical life, equilibrium points tend to be dynamic and changing, never static. – Shane Parrish
Competing: “An economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.” (related: perfect competition; arbitrage — “the practice of taking advantage of a price difference between two or more markets.”) – Gabriel Weinberg
Business and Economincs: “In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.” – Wikipedia (James Clear)
Source:
Shane Parrish’s Farnam Street Mental Model Guide
https://www.farnamstreetblog.com/mental-models/
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Gabriel Weinberg’s Mental Models I Find Repeatedly Useful
https://medium.com/@yegg/mental-models-i-find-repeatedly-useful-936f1cc405d
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James Clear Mental Models Overview
