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How to Use the Simulator
Core Concepts
This simulator uses principles from quantum mechanics to model economic behavior. Instead of having single, definite values, market variables like Price, Supply, and Demand exist in a superposition of multiple possible states at once.
Price, Supply, and Demand States
The Price States, Supply States, and Demand States sliders control the number of possible values each variable can be in. A higher number of states means more complexity and potential outcomes.
The bar charts at the bottom visualize this concept. Each bar represents a possible state, and its height represents the probability of the variable "collapsing" into that state at any given moment. The final value you see in the metrics (e.g., "Current Price") is the weighted average of all possible states.
Market Volatility
Market Volatility controls the rate at which the quantum system evolves. It's analogous to the energy or "randomness" in the market.
- Low Volatility: The system changes slowly, leading to more stable prices.
- High Volatility: The system changes rapidly, causing dramatic swings in price, supply, and demand.
This is calculated in the simulation as the standard deviation of the price probability distribution. A wider spread of probable prices (seen in the "Price Quantum States" visualizer) results in a higher volatility metric.
How to Calculate
The final values are calculated as an expectation value. For price, the formula is roughly:
Current Price = Σ (Probability_of_State_i * Value_of_State_i)
This means we sum up the value of each possible price state multiplied by its current probability. The same logic applies to Supply and Demand.