Quote:
Originally Posted by Dreenk317
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Yup, how does supply and demand work in your mind?
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When price falls, the quantity demanded increases.
Quote:
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Originally Posted by Dreenk317
In a true supply and demand economy, as the supply of something increases, the demand for it would go down, so the price would go down.
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Making this statement means you have no idea what you're talking about. To be correct, it would need to be revised to state "as the supply of something increases,
ceteris paribus, the equilibrium price decreases, so the quantity demanded goes up.".
Shifts in the supply curve directly affect price, not demand. The quantity demanded then reacts to the change in price the same way a 6 year old would intuitively expect it to.
An illustrated example with an explanation can be found
here. It is Economics 101. The top left example at the 2 minute mark is the one you need to pay attention too.
If you need any more help than this you'll have to pay my consulting fee.