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Is all of economics reducible to supply and demand?

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Austen posted on Sat, Oct 13 2012 3:46 AM

Is all of economics reducible to supply and demand?

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Answered (Verified) Neodoxy replied on Sat, Oct 13 2012 12:47 PM
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In market exchange, mostly, with the arguable exception of monopoly price since technically a monopoly capable of setting its price has no demand curve beyond a single point which it sets at any one time. What's more important to the market, however, is understanding what makes those supply and demand curve, and the implications of those curves. Most importantly there are concepts, such as public good, consumer's sovereignty, and business cycle theory which cannot be described by S and D. However, prettymuch the entire market process can be displayed with these graphs... So kind of.

At last those coming came and they never looked back With blinding stars in their eyes but all they saw was black...
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The simplest counter-example is Crusoe economy.

The Voluntaryist Reader - read, comment, post your own.
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Answered (Not Verified) Conza88 replied on Sat, Oct 13 2012 11:03 AM
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Human action.

Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
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If you're asking whether the price of a good is completely determined by supply and demand, this isn't true.  Consider the concept of elasticities.

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Answered (Verified) Neodoxy replied on Sat, Oct 13 2012 12:47 PM
Verified by Austen

In market exchange, mostly, with the arguable exception of monopoly price since technically a monopoly capable of setting its price has no demand curve beyond a single point which it sets at any one time. What's more important to the market, however, is understanding what makes those supply and demand curve, and the implications of those curves. Most importantly there are concepts, such as public good, consumer's sovereignty, and business cycle theory which cannot be described by S and D. However, prettymuch the entire market process can be displayed with these graphs... So kind of.

At last those coming came and they never looked back With blinding stars in their eyes but all they saw was black...
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