November 28, 2012

Supply and Demand Plot

The only other thing I remember from economics 101 in college is the term oligarchy, where there are only a few businesses that dominate the market, e.g., UPS and FedEx in the package shipping arena. An education is a beautiful thing, but not as beautiful as a simple line chart that can explain an entire class with a few well placed lines. As demand falls, supply increases, until you hit that magic point where they cross, and you are supposed to set the price or something. I don't know, go take the class already.
supply and demand line chart showing price and quantity