Making Markets with the Invisible Hand
In This Chapter
• Introducing supply and demand
• Buyers and sellers look for harmony
• The mysteries of prices
Demand, supply, prices, competition, and innovation shape not only how much of a particular good or service is sold in small markets, such as roadsideflower stands, but also do the same for products sold globally. Global markets are more complicated, of course, but the song remains the same.
Going to the Market
Have you ever been to a farmer’s market? Sellers of fruits, vegetables, meats, cheeses, and lots more gather in one place to make their goods available to customers. Sellers, acting out of self-interest, want to sell their products for the highest possible price. Buyers, also ...