| Author: | Hak Choi | ISBN: | 1230002251530 |
| Publisher: | Hak Choi | Publication: | April 4, 2018 |
| Imprint: | Language: | English |
| Author: | Hak Choi |
| ISBN: | 1230002251530 |
| Publisher: | Hak Choi |
| Publication: | April 4, 2018 |
| Imprint: | |
| Language: | English |
Economists like to brag about their demand and supply theories. For example, they claim there is a law of supply, with a positive relation between price and quantity. But can they derive such a relation? Some think utility or indifference curve can derive one, but I discover that most of the time they derive only a negative relation. Perhaps, some combination of the so-called income and substitution effects may make up a positive result, but then it is not a law (a law must be one that holds under all circumstances). When utility cannot deliver the law of supply, some pick the income line for it, some use cost, some choose a vertical line, others turn to a decreasing curve, or a up-and-down one, or a backward-bending one. In short, there is a great variety of choice, but this book will prove that none is the correct supply curve.
Economists like to brag about their demand and supply theories. For example, they claim there is a law of supply, with a positive relation between price and quantity. But can they derive such a relation? Some think utility or indifference curve can derive one, but I discover that most of the time they derive only a negative relation. Perhaps, some combination of the so-called income and substitution effects may make up a positive result, but then it is not a law (a law must be one that holds under all circumstances). When utility cannot deliver the law of supply, some pick the income line for it, some use cost, some choose a vertical line, others turn to a decreasing curve, or a up-and-down one, or a backward-bending one. In short, there is a great variety of choice, but this book will prove that none is the correct supply curve.
