> The law of supply and demand is like the Newton's laws of physics, it works.
Do they teach this to you guys in school? Many people religiously believe it.
Newtonian physics is a model approximating reality, but it breaks down if you analyze cases that can be safely ignored for many engineering purposes, like traveling at high speeds.
Supply and demand are worse. They’re concepts approximating certain trends in economic outcomes that almost always break down in real world situations.
For example: more supply can generate more demand. Demand can be inflexible with respect to supply. Supply and demand are unstable and can change unpredictably. In a monopoly situation price can be manipulated. Short term large supply can hamper long term.
It’s weird that people try to explain the world with supply and demand as if everyone else was an idiot who doesn’t understand simple truths, while in reality they are the ones who don’t appreciate the complexity of things like urban development.
Do they teach this to you guys in school? Many people religiously believe it.
Newtonian physics is a model approximating reality, but it breaks down if you analyze cases that can be safely ignored for many engineering purposes, like traveling at high speeds.
Supply and demand are worse. They’re concepts approximating certain trends in economic outcomes that almost always break down in real world situations.
For example: more supply can generate more demand. Demand can be inflexible with respect to supply. Supply and demand are unstable and can change unpredictably. In a monopoly situation price can be manipulated. Short term large supply can hamper long term.
It’s weird that people try to explain the world with supply and demand as if everyone else was an idiot who doesn’t understand simple truths, while in reality they are the ones who don’t appreciate the complexity of things like urban development.