Economics Dictionary of ArgumentsHome
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| Demand: In economics, demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices. It is represented by a demand curve, which shows the inverse relationship between price and quantity demanded. See also Price, Markets._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Friedrich A. von Hayek on Demand - Dictionary of Arguments
Boudreaux II 60 Economic cycles/demand/ Hayek/Boudreaux: Business people know that their profits rise and fall with rises and falls in the demand for the products they sell. If more paying customers are streaming through the doors, times are good. Fewer customers, in contrast, mean worsening times - and, for many firms, even bankruptcy. Likewise for workers. They understand that the greater the demand for their employers' outputs, the greater the demand for their labour services. When business is booming, their jobs are more secure and their wages rise. When business is bad, jobs are less secure and wages stagnate. Demand: This understanding by business people and workers of the importance of high demand in their industries and firms is correct. Problem: But (…) our roles as producers ((s) workers, wage earners) can mislead us into making mistaken conclusions about the larger economy. One such mistaken conclusion about the larger economy is that economic downturns – recessions - are caused by too little overall demand. A follow-up mistaken conclusion is that the appropriate cure for recessions is a set of government policies that increase demand. Recession: Because an economy-wide recession affects nearly all firms and industries and not just a few, the demand that is said to be too Iow during recessions is called "aggregate demand." Aggregate demand is the overall demand in an economy for all goods and services. >Recession, >Demand/Keynes._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Hayek I Friedrich A. Hayek The Road to Serfdom: Text and Documents--The Definitive Edition (The Collected Works of F. A. Hayek, Volume 2) Chicago 2007 Boudreaux I Donald J. Boudreaux Randall G. Holcombe The Essential James Buchanan Vancouver: The Fraser Institute 2021 Boudreaux II Donald J. Boudreaux The Essential Hayek Vancouver: Fraser Institute 2014 |
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