原创力文档Chapter One The Market --- Appreciating Economic Modeling The Purpose of this Chapter To begin to understand the art of building an economic model To begin to understand three basic elements of modeling in economics: Purpose Simplification through assumptions Value judgment The Purpose of an Economic Model The purpose of an economic model is to help provide precise insights (精确的洞察力）on a specific economic phenomenon. Thus: Different phenomena needs different model; Simplification by assumption is necessary An Illustration: Modeling the Apartment Market Purpose: How are apartment rents de
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