Microeconomics 101

Apr 10, 2024 | Finconomics 101, No Bull Economics

The Right Way to Lower Demand Post Banner

Sometimes it is important to review what we all learned in our intro economic classes lest we get confused by the PhDs at the Fed. Here we will review the cause of high prices & their simple cure.

Microeconomics 101

  • The goal is to lower prices on the vertical axis (refer to charts below) & there are 2 ways to accomplish this – we can decrease demand (bad) or increase supply (good).
  • Why is it bad to lower prices by decreasing demand by strangling the economy with high-interest rates? Well, because it requires a high level of unemployment and financial pain for the most vulnerable.
  • Why is it good to lower prices by increasing supply? Well, because it entails adding jobs, increasing production, creating new opportunities, and creating income & wealth.
  • Nuff said!

Marketing Consumer Research Weekly Banner

Nobull consumer research weekly

No Bull Economics

Get Corporate & Market Insights in your inbox