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Blazing goIITian

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5 Nov 2010 21:35:14 IST

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Why do we require le chattier principle is an industry ?

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Why do we require le chattier principle is an industry ?

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Sagar Saxena

Blazing goIITian

Joined: 8 Oct 2008

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20 Jul 2012 19:22:35 IST

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In economics, a similar concept also named after Le Chatelier was introduced by US economis paul in 1947. There the generalized Le Chatelier principle is for a maximum condition ofeconomic equlibrium: Where all unknowns of a function are independently variable,auxilliary constraints—"just-binding" in leaving initial equilibrium unchanged—reduce the response to a parameter change. Thus, factor-demand and commodity-supply elasticities are hypothesized to be lower in the short run than in the long run because of the fixed-cost constraint in the short run.

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