Friday, November 4, 2011

The Middleman and Demand (November 2nd, 2011)

The middle man that has a comparative advantage over something. Unique ability to bring buyers and sellers together. Wegmans is the middleman. Wegmans is going on their transactions a lot less and cheaper. They bridge the people together. Exchanges of porperty rights to things.

Demand
Exchange can occur in small groups and specific information have at that place and time.
Where does price come from? Price is information. Signals to buyers and sellers to what is scarce. This is what society values.

Markets are any group of buyers and sellers. There is also potential. Any decentralized, unorganized interaction between buyers and sellers. When you have a market, there is a production of money prices and non money prices that produce order. Order just means that stuff is on the shelves. The 2006 football crisis and it did not happen because of order.

Free health care is not free. In the United Kingdom, the 85% have to wait 3 months but for us we don't, we have 0%.

Buyers have "demanders" who have goods as households. They factor firms. Well the seller are the goods of the firms, and the factor is the households.

Demand is a relationship of the amount you wish to obtain and the sacrifices you make to get there. The quantitative demand is the amount of the good that buyers are willing to be able to consume at a particular price.

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