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To: November 2010
Demand is down, prices are up, which means supply is down.

Huh? If demand is down how do prices go up?

10 posted on 09/12/2010 5:37:08 AM PDT by raybbr (Someone who invades another country is NOT an immigrant - illegal or otherwise.)
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To: raybbr

Huh? If demand is down how do prices go up?
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Supply is down. Supply and demand set price in a free market, they balance based on pricing, or price responds to demand and supply, depending on how you look at it (it’s individuals making decisions on supply demand and pricing). The curve moves not just based on demand but also on supply. With the emphasis on Keynsian thinking in academia a lot of the brainwashed fools that are produced think only about demand and ignore supply in setting prices and economic activity.


14 posted on 09/12/2010 5:44:57 AM PDT by November 2010
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