Lesson 3 Lesson 3: Supply & Demand
Presented by: Dr. Tawni Ferrarini
Northern Michigan University
Coordination via Markets: Demand and Supply
In a market economy, who is looking out for the good of society as a whole? Well, no one. Despite this apparent negligence, however, market economies have proven remarkably successful in promoting overall well-being. Supply and demand are key to understanding why. The following lesson describes how the behavior of people interacting in competitive markets is coordinated for the good of buyers and sellers.
Lesson Three Quiz
Test Your Understanding of Lesson Three
Login or Create an Account to take quiz.
The lesson I have to teach is this: Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson. Let society's legal apparatus remove all obstacles the best it can. Permit these creative know-hows freely to flow. Have faith that free men and women will respond to the Invisible Hand. This faith will be confirmed. I, Pencil, seemingly simple though I am, offer the miracle of my creation as testimony that this is a practical faith, as practical as the sun, the rain, a cedar tree, the good earth.
Coordination via Markets: Demand and Supply, Part II with Dr. Tawni FerrariniPlay Now
Demand and the Markets for Cereal with Dr. Michael D. Thomas and Learn LibertyPlay Now
Milton Friedman - I, Pencil (Free To Choose Network)Play Now
Common Sense Economics Reading Supplement, “Demand, Supply, and Adjustments to Dynamic ChangeRead Now
Ludwig von Mises, Human Action: A Treatise on Economics, 6.XXX.1 - 6.XXX.63Read Now
Leonard E. Read, “I, Pencil,” RP.1-RP.29.Read Now