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Forum Discussion
Supply and demand?
Most people have a grossly oversimplified notion of "supply and demand".
For example, supply and demand are suspended when a monopoly (or it's brother oligopoly) controls things, as OPEC did in 1973.
Economists use monotonic curves for 'demand' and 'supply' (the notions we usually have when we laymen talk about supply and demand), and where they intersect is the Equilibrium Point. But history is full of exceptions to the monotonic curve idea. For example, during the Irish potato famine when potato prices increased demand actually increased. And that was a Free Market. It's because of 'externalities' as economists call other independent variables. Any Electronics Engineer who's tuned a stagger-tuned IF strip can sympathize.
It's a terrible thing when actual fact interferes with a guys ideology.
Most people have a grossly oversimplified notion of "supply and demand".
For example, supply and demand are suspended when a monopoly (or it's brother oligopoly) controls things, as OPEC did in 1973.
Economists use monotonic curves for 'demand' and 'supply' (the notions we usually have when we laymen talk about supply and demand), and where they intersect is the Equilibrium Point. But history is full of exceptions to the monotonic curve idea. For example, during the Irish potato famine when potato prices increased demand actually increased. And that was a Free Market. It's because of 'externalities' as economists call other independent variables. Any Electronics Engineer who's tuned a stagger-tuned IF strip can sympathize.
It's a terrible thing when actual fact interferes with a guys ideology.
