"shortage" has no meaning in economics https://twitter.com/Static__Age/status/1316359724321910785 …
-
-
let's say that you want to hire pizza deliver drivers, and if you can get them at $10/hr you'll take 3, at $5/hr you'l take 10, and at $15/hr you'll take 1 there's a related supply curve: how many will work at various prices you offer you don't know what the market will bear >
-
you try offering $5/hr and get 0, you up your offer to $10/hr and you get 3 who apply - so you're set. You've learned a little bit about the supply curve. You know where it intersects your demand curve.
- Show replies
New conversation -
-
-
right but if the price at which transactions are happening is not the market clearing price, for some reason, then quantity supplied and quantity demanded won't be the same correct?
-
I find that it's often helpful to make up concrete examples and work them through ; this helps make abstract stories about curves more tractable, and sometimes the "paradoxes" you perceive, or complications, disappear
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.