Quote:
Originally Posted by Synthlol
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When price falls, the quantity demanded increases.
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. |
FYI, this guy is correct. Dreenk317, you're an idiot.