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supply and demand Fun Facts

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Fun Fact
supply and demand
Smith wrote about four principles of supply and demand, detailing each in a way that still remains relevant today.
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supply and demand
Smith wrote the book 'The Origins of the Law of Supply and Demand', paving the way for modern economics theory.
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supply and demand
Smith argued that within the human social contract existed a guiding force towards a market society.
Fun Fact
supply and demand
Many say that a homogenization of such a large market leads only to generalizations that ignore the declining rate of profit!
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supply and demand
Smith stated that goods considered too high price would always lead to a lower demand for such goods, and a higher demand for cheaper replacements.
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supply and demand
Smith held that a delicate balance between supply and demand was utopian, but that the market would continue anyway.
Fun Fact
supply and demand
The curve described the relationship between supply and demand, whilst also creating a point of 'market equilibrium'.
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supply and demand
Again a weakness of Smith's theory, some economists today argue that the flow of goods exists in more than two categories due to the ever-confusing boundaries between 'essential' and consumer goods.
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supply and demand
Demand and supply is held as the basic principle of a capitalist society, holding up a free-market society.
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supply and demand
Although communism does present challenges to free-market capitalism, there still exists an understanding of supply and demand within both differing ideologies.

More Economics Fun Facts

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