Right Opposition » Uncategorized http://www.rightopposition.com Respecting the Constitution and the Founding Fathers Sat, 14 Aug 2010 19:42:27 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Supply and Demand Curve in Action http://www.rightopposition.com/2010/01/supply-and-demand-curve-in-action/ http://www.rightopposition.com/2010/01/supply-and-demand-curve-in-action/#comments Sat, 30 Jan 2010 20:54:45 +0000 Joseph Evans http://www.rightopposition.com/?p=8 Economics 101 teaches  the concept of the Supply and Demand Curve. It is a powerful illustration which shows the relationship between prices and demand. As demand rises prices follow. The point at which price and demand balance one another is the point of equilibrium. All markets will stabilize at equilibrium if artificial forces are excluded. It’s a frustrating law that governments often try to bypass. But the curve always wins. Attempts to artificially shift the curve result in fouled economic conditions producing shortages or surpluses of goods. An inefficient economy is the result.

An article from the AP shows the curve in action. The makers of Tide detergent has been forced to cut prices. Why? Because of decreased consumer demand. IT’s and example of the Supply and Demand Curve in action and moving toward equilibrium. It’s a normal process.

Political leader should take note. Leave the market alone and they will work.

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