This is a statement that is based in the very first rule of economics, that the supply curve is flattest when supply is greatest.
If, however, the supply curve is flat, then the demand curve is flat too. What that means is that the demand curve is flat, meaning that there is no supply to meet demand, meaning that there is no incentive for consumers to buy and there is no money to spend on things like advertising or promotions. There’s a supply of something, and then you have a demand curve where there isn’t any more.
The problem with supply and demand is the fact that it seems to be an illusion. It’s not hard to imagine that there is a supply of something, that would mean that the demand for it is flat and thus there is no incentive to buy it. This can lead to inflation, and the result is that the value of every unit of something decreases.
The demand curve, on the other hand, is the other way around, where the demand for something increases with the supply of it. The demand for something is determined by how much it is being used. Say you have a large piece of furniture, a large computer, or a large TV. The more you use them, the more valuable they are.
The demand curve is more of an inverse relationship, and when it’s flatter it’s basically a pure utility function. This means that the amount of money you have to work with is lower than if it was flat. The demand for goods and services goes down as supply goes up, or in our case, as demand goes up.
If money is in short supply, it becomes worth far less. In fact, if the amount of money in our world is small, we should expect things to be cheap. The more money we have, the more we can spend on stuff. In this sense, we have a perfect supply and demand curve, because everything is either worth something, or not. It’s how we can spend without spending that causes the supply and demand curve to move up or down.
the supply and demand curves are the basic building blocks of capitalism, and for goods and services to be profitable, they have to be high enough. For example, if a product or service is worth more than it costs to produce, that will be reflected in its price. Because the more money you have, the more you can spend on it.
A simple supply and demand curve, like the one shown in the above graph, will always show a price that’s not too far above or below the market price. The fact that the supply curve isn’t as flat as the demand curve will always be reflected in the cost of production as well, and that is why economies work. The problem is that it’s often this curve that’s wrong.
You can see this in the current economy, which has a very steep supply curve compared to the demand curve and we have a problem. The real reason for the current economy is that the supply curve is too steep. If all the money in the economy were spent on producing more goods and services, the supply curve would be much flatter and the economy would be much more efficient. So, the goal in any economic system is to maximize the amount of money that can be spent on goods and services.
