Here's Why Supply and Demand Is Overrated!
Economics Explained22 Okt 2020

Here's Why Supply and Demand Is Overrated!

If you were to ask any random person on the street what it is that they knew about economics there is a pretty good chance that the first thing that they would blurt out would be the words “Supply & Demand” The number of people out there willing and able to buy a good or service versus the number of people out there willing to sell a good or service, all individually vying to get the best possible price. If demand increases prices increase, if demand falls prices fall and visa versa with supply. Now I know this channel is called Economics Explained but for most of you listening, all of this should pretty much go without saying. The only issue is that this rosy picture is in no way a reflection of the real world. So what is going on here? In this episode of Economics Explained we will explore the following questions: How are prices decided if not through supply and demand? What does this mean for regular people in the economy? How could all of this be used to make better policies and business decisions? And how does this all make the case for a zero dollar minimum wage? Learn more about your ad choices. Visit megaphone.fm/adchoices

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