BRIAN KANTOR: Some basics of supply and demand
The prices paid for imports and exports affect average prices and mostly push the averages higher
06 October 2023 - 05:00
Higher prices discourage demand and encourage supply. That prices generally tend to rise with increased demand or reduced supply, and vice versa, seems obvious enough. But the supply and demand for all goods and services are not determined independently of each other.
The supply of all goods and services produced in an economy over a year is equivalent to all the incomes earned producing the goods and services that year. The value added by all producers (GDP) is equal to all the incomes earned supplying the inputs that produce output. ..
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