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The Physics Principles and Mathematical Explanation of Supply and Demand --- Returning to the Starting Point of Economic Research
  • Xiangpeng Meng
Xiangpeng Meng
Shihezi University

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This manuscript presents a pioneering application of Newton's three laws and the principles of relativity to the study of fundamental theories in economics. By analogizing desires, utility, and prices to physical concepts, and integrating these concepts into the theoretical framework of natural sciences using mathematical language, the author has constructed a binary system and a ternary system for economic analysis. Based on this foundation, the laws of momentum conservation and energy conservation in social sciences are derived on a mathematical level. Subsequently, the characteristics of free markets and non-free markets are analyzed according to the hypotheses of momentum conservation and energy conservation in social sciences. This manuscript argues that the fundamental theoretical principles in social sciences, represented by economics, are unified with those in natural sciences, represented by physics. The mathematical explanation of supply and demand in social sciences presented in this manuscript offers a perfect integration of the theoretical foundations of economics into the framework of physical principles. This opens up new research areas for future studies in social sciences.