Will doesn't get it about market forces
Published: Saturday, January 13, 2007 at 6:01 a.m.
Last Modified: Saturday, January 13, 2007 at 12:42 a.m.
George Will obviously needs a lesson on the principles of Economics 101. He states that the demand for most commodities is elastic and proceeds to butcher the definition of elasticity by stating that a rise in the market price of a good or service results in a decrease in the demand for the product.
The market, or equilibrium, price of a commodity is determined by the forces of market supply and demand. It is the price at which the quantity taken off the market by the buyers is equal to the quantity put on the market by the suppliers.
What Will should have said was that an elastic response to an increase price in the price series of the demand curve or schedule would result in a reduction of the quantity the buyers are willing to take off the market. Note also, that a rise in demand has a tendency to raise the market price and a decrease in demand, holding the supply constant, will lead to a drop in the market price.
It is obvious that George Will does not know what he is talking about and that his flawed opinions on the minimum wage serve as testimony to the ignorance of this pompous commentator.
Leonard M. Abate,
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