5. Supply and demand

Chapter5Somehow, the words ‘supply and demand’ are seen to be the essence of economics.

(Just as the words ‘cause and effect’ seem to convey the essence of the arguments about what is true in economics.)

These phrases have become linked with economics.

Unfortunately, economists have become completely befuddled with the application of the concept of ‘cause and effect’ to the study of ‘supply and demand’.

We look more closely here.