"I assume that a salary is the price paid for a commodity, and it ought to conform with the
law of supply and demand. If the salary is fixed without any regard for that law, as, for instance, when I see two engineers leaving college together, both equally well trained and efficient, and one getting forty thousand while the other is satisfied with two; or when I see lawyers and hussars, having no special qualifications, appointed directors of banking companies with immense salaries, I conclude that the salary is not fixed in accordance with the
law of supply and demand, but simply through personal interest.
Worse, in crucial areas he strips modern economics of its more rational doctrines--notably the law of utility, the
law of supply and demand, the doctrine that wages reflect marginal revenue product, the law of derived demand, and the principle that profits are the "value-added" component of a product or service earned legitimately by businessmen.
Across Brazil, industry experts say that the
law of supply and demand favors a price increase for natural soy.
According to the economic
law of supply and demand, when prices fall, farmers should cut back on the amount of food they produce, which would shrink the supply of food and drive up its price.
The answer lies in the familiar
law of supply and demand, which tells us that if supply increases faster than demand, prices will fall.
Forecast errors no more invalidate this principle of economics than would a failed prediction of price repeal the
law of supply and demand.
If one has the patience to read more or less widely among the divines of the 18th century, who got themselves into print through some
law of supply and demand that to us is inscrutable, one will be amazed to see how platitudinous and how ineffective it all seems today.
At some point in the continuous reduction in the number of available workers willing to take jobs, short of the repeal of the
law of supply and demand, wage increases must rise above even impressive gains in productivity.
Pursuant to the
law of supply and demand, this will result in a new crop of purchasers who will contribute to the already recovering sales market.
Finally, the
law of supply and demand comes itno plays, as do economies of scale.
Judging by Manhattan's lodging market, the
law of supply and demand also seems to have been written off the books.
"Real estate still works on the
law of supply and demand, and with no new supply, obsolescence and the demand side increasing, vacancy rates will decline," Mirante added.