Supply and Demand

Economics is so controversial at times and so simple at other times. What is going on in the world, especially in the United States, is frustrating at best. One side wants to bring in awash money, the taxpayers, and bail out those who got us into this mess. The other side wants to let it ride and glare how the score settles. Neither is conscientious and neither is wrong. There are at least these two ways of looking at the alike economic issue and time to come up with a variety of solutions, often contradictory. When it comes to work and demand, it does get a little simpler, at least in theory. If Hawaii precast concrete gets orders for two hundred precast concrete barriers and they can only make one hundred and ninety, then the supply is smaller than the demand.

Likewise, if Fontana precast concrete gets an disposal for two hundred precast concrete barriers and makes two hundred and ten, then there is a surplus. Does that mean that Fontana should lower the price to dispose rid of those ten? What if Hawaii increased the price so only one hundred and ninety were wanted at the new higher price?

That's where the economics gets a mini trickier. Hitting the speck on having the assistance line on the supply/demand graph cross the demand line at the point where you're industry is equal to the number is complicated for some products. A precast concrete company can determine when a highway is going to be built and how many concrete highway barriers will be needed. They can't predict when a major disaster is going to wipe gone a decrease of plan that will need several hundred barriers to make it safe. It is a game that no matter what is lifetime manufactured, someone will be estimating how many products to make and how much to see them for.

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