Supply-and-demand model involving fuzzy parameters. (English) Zbl 1360.91105

Pandit, Purnima K.

Int. J. Adv. Appl. Math. Mech. 1, No. 2, 103-115 (2013).

Summary: In this article, we investigate supply-and-demand model a basic application in economics. In the simplest form the supply and demand can be considered as function of price only keeping other parameters constant. In this form the functions are represented by straight lines whose intersection is the equilibrium state. When supply and demand are represented as function of parameters other than price the curves are shifted straight lines. Thus, in a way to incorporate the changes in supply and demand due to the determinants other than price, we can consider the supply-and-demand curves being represented by the parameters involving imprecision. This imprecision in the supply-and-demand realistic models can be represented using fuzzy parameters. To obtain equilibrium state for such systems we have to solve fuzzy linear system involving negative fuzzy numbers. We show that such systems are efficiently solved using our techniques [“Fully fuzzy system of linear equations”, Int. J. Soft Comput. Eng. 2, No. 5, 159–162 (2012); “Systems with negative fuzzy parameters”, Int. J. Innov. Technol. Explor. Eng. 3, No. 2, 102–105 (2013)].

MSC:

91B42	Consumer behavior, demand theory
03E75	Applications of set theory
90B05	Inventory, storage, reservoirs

Keywords:

fuzzy systems; negative fuzzy numbers; \(\alpha\)-cut; supply-and-demand; economics