EQUATION of EXCHANGE |
SSET O9 - EQUATION of EXCHANGE
The
Causal - natural correlation of exchange
since our previous work SSET 7), arise from equation developed in the new
Subjective and Solidarity Economic Theory
(SSET). Let us see:
The following show a geometric expression of the equations mentioned:
v$(q) = U$ / Uq = 1,875 / 1,786 = 1,05
Urq($) = Uq($) * v$(q) = 1,786 * 1,05 = 1,875 = U$
Equation of the Exchange : the relative marginal utility of an economic good is equal to the marginal utility of the other economic good to which it is relative (exchanged and/or compared) .
Carlos A. Bondone
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