1.   Another consequence of the artificially stimulated excess demand for food was the creation of black Markets.

2.   When the market is in equilibrium there can be no excess demand for, or excess supply of, any investment asset.

3.   The rate of change of money wages is measured along the vertical axis and the excess demand variable,, is measured along the horizontal axis.

4.   If the ith labour market initially experiences excess demand money wages will rise at a rate.

5.   Hence there is notional excess supply in the labour market, which is necessarily mirrored in notional excess demand in the goods market.

6.   The level of effective excess demand,, is zero, despite the fact that notional excess demand,, is positive.

7.   If the government intervenes in the foreign exchange market to maintain a rate of exchange below the equilibrium, there will be an excess demand for sterling.