Generally speaking, my brain operates in perfect market conditions, no chance for arbitrage. I make all my daily decisions in accordance with the basic principles of micro-economics.
Micro-economics as I’m sure you are aware consists of a Supply curve and a Demand curve. It’s easy to make one right at home with your arms. Make an X with your arms in front of your body. Your left arm is the Supply Line, your right arm is the Demand Line.
You know how this works, where the 2 lines cross is optimal quantity at your optimal price.
But this is how I see it my mind.
My Dad wants me to mow the lawn. He has a strong demand for lawn mowing, this shift your Demand curve to the right.
However, I have a very low supply of give a damn. Since I don’t give a damn, my Supply curve shifts way left.
What occurs is a market inefficiency, and a pounding.
1 comment:
Actually - if the demand in lawn mowing increases, and there are no substantial changes in the Give a Damn supply, then you should move further into AS1 graphics.
Mainly because the momentum U have - you cannot change Give a damn suply so you have to compensate it with the price.
Or...
By increasing the price, the market of gardening should balance - you will get paid and you will maw the lawn ;)
CHeers,
Tsvyat
tsvyatkor@yahoo.com
Post a Comment