The temporary equilibrium method has been devised by Alfred Marshall for analyzing economic systems that comprise interdependent variables of different speed.
Given this capacity, the supply offered by the industry will depend on the prevailing price.
The price mechanism leads to market clearing in the short run.
However, if this short-run equilibrium price is sufficiently high, production will be very profitable, and capacity will increase.
Using the temporary equilibrium method, it can be reduced to a system involving only state variable.