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Originally Posted by Dyshade In this instance I asked for your opinion of the Law Of Supply and Demand.... in your own words... I did not want to "google" nor look in a textbook.... I myself understand the principle of supply and demand yet noone understands the mystery of how/why it works... |
Is supply and demand that hard a concept to understand? Consumers have a need or desire for goods. Producers have a capacity to produce those goods, where higher quantities offer lower relative costs (in general). The balance is found where the supply of goods creates such competition that there is an optimal balance between the market price, and the production costs. The highest profit per unit.
Defeating this system requires control of (nearly) ALL supply or (nearly) ALL demand. And control needs not be ownership (take the OPEC model for instance).