Demand: Wants, Needs, and Red Meat
In a market economy, everything has a price, and buyers—those with the demand—always want the price to be lower. Meanwhile, sellers—those with the supply—want the price to be higher.
In general, the lower the price of a given product or service, the greater the quantity that people will be willing to buy. The higher the price of the product or service, the lower the quantity that people will be willing to buy. People buy more hamburgers than caviar, more costume jewelry than diamonds, more Chevrolets than Cadillacs.
Let’s assume that a large supermarket chain sells beef (a fairly safe assumption). Let’s further assume that it has experimented with various prices and has gathered the following data, here arranged ...