This section will prov ide a solution to our aforementioned problem, that is, where does the demand come from if agents try to sell first. Apparently, for the system to work, there must appear a trader who comes to the economy only to demand without trying to sell something first Does this type of trader exist in the real world? Yes, it does, and we call the demand from such a trader the non-supply related demand Supply-Related Demand and Non-Supply Related Demand. a supply related demand is the demand whose payment is supposed to be covered -not necessarily in ad vance but soon by a corresponding sale. A non-supply related demand is the demand whose payment is not supposed to be covered by an immediate sale, though perhaps in a very long future, this pay ment should still be covered. a typical example of supply related demand is consumption demand which is supposed to be covered by consumer income coming from the sell ing of endowments Another example is production demand, e.g., labor, material, etc, whose pay ment is supposed to be covered by selling commod ities on which they are used in production processes. The non supply related demand is the autonomous demand in the usual sense In the traditional equilibrium framework, there is no such distinction. 2 As we shall see later these two types of demand play different roles in the market exchange process and hence the distinction turns out to be necessary Constraints for Economically Sensible Supply-Related Demand Demand always means a financial pay-out and hence for an agent it is a loss in his wealth. Thus before he pays out, the agent must make sure whether his pay-out is economically sensible Then what do we mean by an economically sensible pay-out or an economically sensible demand? For supply-related demands, two constraints must be posited Financial Constraint: The agent must have financial resource to pay for his p urchase. as demand 2. Paul Davidson (1992) remarks that in this sense"Keynes's taxonomy provides an inherently more general theory. (pp 458)6 This section will provide a solution to our aforementioned problem, that is, where does the demand come from if agents try to sell first. Apparently, for the system to work, there must appear a trader who comes to the economy only to demand without trying to sell something first. Does this type of trader exist in the real world? Yes, it does, and we call the demand from such a trader the non-supply related demand. Supply-Related Demand and Non-Supply Related Demand. A supply related demand is the demand whose payment is supposed to be covered — not necessarily in advance but soon — by a corresponding sale. A non-supply related demand is the demand whose payment is not supposed to be covered by an immediate sale, though perhaps in a very long future, this payment should still be covered. A typical example of supply related demand is consumption demand, which is supposed to be covered by consumer income coming from the selling of endowments. Another example is production demand, e.g., labor, material, etc., whose payment is supposed to be covered by selling commodities on which they are used in production processes. The non￾supply related demand is the autonomous demand in the usual sense. In the traditional equilibrium framework, there is no such distinction. 2 As we shall see later, these two types of demand play different roles in the market exchange process and hence the distinction turns out to be necessary. Constraints for Economically Sensible Supply-Related Demand. Demand always means a financial pay-out and hence for an agent it is a loss in his wealth. Thus before he pays out, the agent must make sure whether his pay-out is economically sensible. Then what do we mean by an economically sensible pay-out or an economically sensible demand? For supply-related demands, two constraints must be posited. I. Financial Constraint: The agent must have financial resource to pay for his purchase, as demand. 2 . Paul Davidson (1992) remarks that in this sense "Keynes's taxonomy provides an inherently more general theory."(pp. 458)