“Economics: Supply and Demand” is a Social Studies lesson that focuses on understanding the law of supply and demand and its effect on prices in a market economy. The original informational text provides an overview of the definitions of supply and demand, as well as several real-world examples of how this principle plays out in the economy.
The concept of supply and demand is often called the heart and soul of economics. It is the foundation for much of what is studied in the field. Understanding how supply and demand affect the economy helps us recognize economics everywhere in our daily lives.
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http://finance.yahoo.com/blogs/the-exchange/10-items-whose-prices-jumped-most-last-10-200433174.html. This puts to rest the myth of a market economy once and for all. Supply and demand no longer drive prices. These days, once the price of a product rises, it will NEVER go back down, even when the market says it will. Why? Greed. Crude oil falls, but the prices at the pump rise. They give us all kinds of justifications for this, but they are still thin excuses for the real reason.