Effect of Supply and Demand in Controlling GDP Using Matlab Programming

Prices and quantities have been described as the most directly observable attributes of goods produced and exchanged in a market economy. The theory of supply and demand is an organizing principle for explaining how prices coordinate the amounts produced and consumed. In microeconomics, it applies to price and output determination for a market with perfect competition, which includes the condition of no buyers or sellers large enough to have a price-setting power. In this paper we analyze, the definition of non-linearization between the partial derivative (money, taxes, and quantity) is concluded to a set-point, which is optimized of all the three major partial derivatives governing the constraint of any economy by using Matlab programming.