# Nature of thermodynamics equation of state towards economics equation of state

## TL;DR

This paper critically examines the nature of thermodynamics equations of state and proposes a framework for classifying economic equations of state, highlighting the importance of coordinate variables and degrees of freedom.

## Contribution

It introduces a classification of equations of state in economics based on thermodynamic concepts and critiques existing models for their degrees of freedom.

## Key findings

- The EoS of market with unitary demand is not a true EoS due to limited degrees of freedom.
- Analysis of coordinate variables clarifies the foundational concepts of EoS.
- Proposes a new perspective for testing and constructing economic equations of state.

## Abstract

This work critics on nature of thermodynamics coordinates and on roles of the variables in the equation of state (EoS). Coordinate variables in the EoS are analyzed so that central concepts are noticed and are used to lay a foundation in building of a new EoS or in testing EoS status of a newly constructed empirical equation. With these concepts, we classify EoS into two classes. We find that the EoS of market with unitary price demand and linear price-dependent supply function proposed by \cite{GumjMarket}, is not an EoS because it has only one degree of freedom.