Abstract
So as to present our reappraisal of the implications of perfect price flexibility in the simplest possible framework, we turn to Marshall's (1920, book V) corn market example, where stocks offered for sale already exist at the outset and where equilibrium is established solely through price adjustment.' In this context, Marshall simply took it for granted that the competitive price is the unique equilibrium price (op. cit., p. 278). Indeed, it is clear that if prices are set by the sellers, and no seller can change a quoted price, then a uniform price above the competitive
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