Friday, March 23, 2007

As Simple As Possible

Economic science simplified to a 3-variable equation.

1. Prices can only go up if demand increases, or supply decreases. Like rising gas prices.

2. Prices can only go down if demand decreases, or supply increases. Like falling gas prices.



At 3/24/2007 11:31 AM, Anonymous Anonymous said...

What units are supply and demand measured in?

At 3/24/2007 12:27 PM, Blogger Mark J. Perry said...

Supply and demand are usually measured in physical units for retail products, like the number of gallons, barrels, pints, cars, CDs, books, iPods, computers, DVDs, shirts, shoes, houses, etc.


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