I understand ABCT but I can’t understand some aspects of Structure of Production diagramm (used in Hayek’s “Prices and Production” and other books on ABCT(de Soto for example)): how to get from fig.2 to fig.3 (see image below)?
Fig.3 shows how the structure of production changes when people decide to save 25% of their income.
I see that all numbers on second diagramm match each other, but how do we get these numbers from first diagramm knowing only about rise in savings and fall in consumption? How do we know, that there will be 7 stages?
I assume that there can be a lot of mathematical solutions of that task even with same 5 stages. In this case, how that example can be used as a proof? Because, as I see from the context both of “Price and Production” and “Money, Bank Credit, and Economic Cycles” (J.H.de Soto), these diagramms are used not as illustration but as a logical proof.
What do I miss?