headednorth
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Basic Economics by Thomas Sowell is a great book written for everyday people in plain English. It does a great job of describing different economic situations.
When demand rises, sellers raise their prices to meet the demand, buyers buy what they need and no more. A benefit of this is that there tends to be more product available for everyone. Maybe not as much as you'd like, but at least you have something.
Say a hurricane hits. Motel #1 keeps prices the same, motel #2 raises them to meet the higher demand.
A family goes to #1 and rents a room for wife and husband, and another for the kids, and maybe a third for the mother in law. A few families later, the rooms are all rented and the next guy to come along is SOL.
Now, a family goes to #2. Because of the higher price, maybe they all make due with one room or at the most, two rooms. More rooms for available for everyone. May be cramped, and may not be happy about what they paid, but its better than sleeping in the street.
You can pay a higher price for something you want or need, or you can look at a "SOLD OUT" sign for products sold at the regular price.
http://www.amazon.com/Basic-Economi...ie=UTF8&qid=1356113560&sr=8-1&keywords=sowell
http://www.amazon.com/Applied-Econo...3691&sr=1-1&keywords=sowell,applied+Economics
When demand rises, sellers raise their prices to meet the demand, buyers buy what they need and no more. A benefit of this is that there tends to be more product available for everyone. Maybe not as much as you'd like, but at least you have something.
Say a hurricane hits. Motel #1 keeps prices the same, motel #2 raises them to meet the higher demand.
A family goes to #1 and rents a room for wife and husband, and another for the kids, and maybe a third for the mother in law. A few families later, the rooms are all rented and the next guy to come along is SOL.
Now, a family goes to #2. Because of the higher price, maybe they all make due with one room or at the most, two rooms. More rooms for available for everyone. May be cramped, and may not be happy about what they paid, but its better than sleeping in the street.
You can pay a higher price for something you want or need, or you can look at a "SOLD OUT" sign for products sold at the regular price.
http://www.amazon.com/Basic-Economi...ie=UTF8&qid=1356113560&sr=8-1&keywords=sowell
http://www.amazon.com/Applied-Econo...3691&sr=1-1&keywords=sowell,applied+Economics