Saturday, January 16, 2010

Supply and Demand is confusing apparently.

This New York Times article discusses supply and demand in the context of how varying prices of broadband internet affects quantity in various countries.
This graph shows two different situations. In the first, supply shifts depending on the price of laying cables in a given country, while demand stays the same. In the second, demand shifts depending on the wealth of the given country, while supply remains the same. The problem, the article states, is that the situation never involves only either supply or demand changing. Both supply and demand change based on a variety of factors, which makes it difficult to predict the quantity of subscribers in any given country. Okay, it's not particularly interesting, but read it anyway.

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