Dr. Archana Mehra (PhD)Visiting Faculty at The NorthCap University, Gurugram
Dear Engel (curve),
We met almost one year ago. For some it may seem a long time (long run) but for me time has stood still since then. I fell in love with you suddenly and have remained so like an inelastic demand curve. When I looked into your eyes for the first time, I knew it was real and not nominal. I felt I had reached a state of long-run equilibrium but was afraid to express myself in case your assumptions and preferences were different from mine.
You may perceive my love for you as short run but trust me I am a rational person with consistent preferences. I assure you that our desire for each other will be an exception to the law of diminishing marginal utility. I am currently facing budget constraints but I am not an inferior good. I am working very hard on my production possibility frontier to ensure that there is always a consumer surplus for your demands. My endeavour will be that your life always remains in stage I of the production cycle ie, increasing returns.
You may want to consider other guys as my substitutes but I am the most suitable as I have comparative advantage over everyone else because the supply curve of my love for you is perfectly elastic (horizontal) showing infinity and hence the rate of change is zero.
Your family and friends may disapprove initially and form a cartel and use game theory to create disequilibrium. I will assure them that we can live a very optimal life together. My MPS – marginal propensity to save will keep rising to ensure that your MPC – marginal propensity to consume does not have to compromise ever. I will always be by your side and cherish you during boom, recession and depression (Lord Keynes ki kasam).
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