Supply vs Demand

Supply vs. Demand: Equilibrium not always best Some economists look at things as black and white. Supply and Demand are very straight forward concepts, and businesses almost “always want to produce at the most economical quantity-price combination. Graphically, the intersection of the supply curve and the demand curve for the product will indicate the equilibrium point - where there is neither a shortage nor a surplus” (TheShortRun.com). This tends to be where a company …showed first 75 words of 617 total…

…showed last 75 words of 617 total…at the cost of following the laws of supply and demand. The NFL realize this and therefore sets a lowered price, which allows for scalpers, who follow the laws of supply and demand perfectly. Scalpers being in business for a short term profit only, find that equilibrium and sell the tickets well above face value. Works Cited http://www.theshortrun.com/classroom/glossary/macro/supply.html#lawofsupply http://vlad1mir.tripod.com/market_interaction.htm