Changes

People indicate how much they want something (demand) by the amount of money they are willing to pay for it. [[Milton Friedman]] said,

People indicate how much they want something (demand) by the amount of money they are willing to pay for it. [[Milton Friedman]] said,

*There's a fundamental economic law which has never been contradicted: if you pay more for something, there will tend to be more of that something available. If the amount you're willing to pay for anything goes up, somehow or other somebody will supply more of that thing. [http://www.youtube.com/watch?v=L-7oMOxPjNE Youtube video]

*There's a fundamental economic law which has never been contradicted: if you pay more for something, there will tend to be more of that something available. If the amount you're willing to pay for anything goes up, somehow or other somebody will supply more of that thing. [https://www.youtube.com/watch?v=L-7oMOxPjNE Youtube video]

What makes a [[market economy]] interesting is that the economic pressure of increased demand stimulates suppliers to increase their output of goods and services. Initially, this increased output results in proportionally higher sales at the current price. As demand is satisfied, however, price tends to fall.  

What makes a [[market economy]] interesting is that the economic pressure of increased demand stimulates suppliers to increase their output of goods and services. Initially, this increased output results in proportionally higher sales at the current price. As demand is satisfied, however, price tends to fall.