notes-economics

"demand" in economics should be called something else, for instance, "volume of consumption". Because if you plot price against demand, you find that a high price goes with a low demand.

This is counterintuitive using people's usual definition of the word "demand"; for example, when there is a high demand for peanuts peanuts, would you expect peanuts' price to be LOW?

But what demand means in economics is not "how badly people want it" but rather "the number of units that people are willing to purchase". If the price of peanuts goes up, then less peanuts will be purchased. That makes more sense.


" Psychologists have concluded that the feelings of relative poverty are very real, and it's this relative poverty which is most strongly correlated with criminality, not absolute poverty " [1]