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A comment on the law of supply and demand

Author

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  • M. Northrup Buechner

    (Peter J. Tobin College of Business, St. John’s University (New York, USA))

Abstract

Graduate economics departments have largely abandoned the law of supply and demand (henceforth, The Law). Nevertheless, The Law continues to be taught in all undergraduate economics programs, and it is accepted as the fundamental law of price throughout the world. This paper explains how the modern conceptions of demand and supply as schedules have driven The Law from graduate economics. A reinterpretation of the meaning of supply and demand is suggested as the basis for bringing The Law back into the corpus of economic theory, that is, supply and demand should be conceived of the same way Adam Smith and the whole classical school conceived of them—as simple quantities.

Suggested Citation

  • M. Northrup Buechner, 2018. "A comment on the law of supply and demand," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 11(2), pages 67-80, May.
    • Handle: RePEc:bus:jphile:v:11:y:2018:i:2:n:4
    as

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    References listed on IDEAS

    as
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    3. Riley,John G., 2012. "Essential Microeconomics," Cambridge Books, Cambridge University Press, number 9780521827478, October.
    4. Haddock, David D & McChesney, Fred S, 1994. "Why Do Firms Contrive Shortages? The Economics of Intentional Mispricing," Economic Inquiry, Western Economic Association International, vol. 32(4), pages 562-581, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    supply; demand; competition; oligopoly; market structure;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

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