If demand is less than offer (i.e. the excess offer goods takes place, consumption is equal to demand, but not sold goods lead to overstocking. Thus in this model communication between consumption of Ct, demand of Dt and the St offer during every period of time of t can be presented in the form
Value of model A is defined also by that many modern models of dynamics of the prices, and also dynamic models of macroeconomic lead to "arachnoid" process. Let's consider hypotheses which are the cornerstone of this model.
This model — one of historically first dynamic market models reflecting behavior of participants. It serves as a good illustration of application of a method of modeling in the analysis of economic processes.
In both cases on the Q0p plane the corresponding iterative process is represented in the form of a web which "is reeled up" on curves of supply and demand. It gave the grounds for the general name of discrete dynamic models.
Functions of supply and demand are the main components of a market model of goods as they — according to the assumption — represent solutions of optimizing tasks which arise before participants ("buyers and "producers").