Cyclical equilibrium

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Cyclical equilibrium - is the equilibrium characteristic for the market for agricultural products, which results from the oscillatory movement of price and supply resulting from the cyclicality of crop and animal production. The cyclical nature is based on natural and climatic conditions that affect the seasonality of the role and the cycle of animal husbandry. This results in a longer supply response to changes in market conditions. This involves delayed supply response to rigid equilibrium prices over the life cycle and periodic price response to rigid supply driven by demand. Cyclical equilibrium is characterized by a subdued, explosive and periodic equilibrium model. These models differ in the angle between the demand curve and the supply curve curve.

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