WHEN ”THE LAW OF DEMAND AND SUPPLY” BREAKS

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WHEN ”THE LAW OF DEMAND AND SUPPLY” BREAKS

Once Rahul Gandhi started to teach The Law of Demand and Supply addressing girls of Patna Women’s College responsing in regard to one question of a girl seeking response why acquiring education has been expensive and becoming expensive and expensive.Rahul Gandhi started to teach law of demand and supply that the demand of educational institutions is higher,but the supply is lower and when the supply is lower and demand is higher,price is higher and reversely when demand is lower and supply is higher,price is lower.

What our Economics teaches us,Rahul Gandhi teaches students.

It seems,many laws in Economics have been formed in order to oppress common people by presenting such incidents as reality of an economy and reality of lifestyle.

Even if the supply is less,this is possible to confine the charge by decreasing and even if the supply is more,this is possible to confine the charge by increasing.

In all Service Sector, law of demand and supply can’t be applied.It is just like increasing the charge arbitrarily by getting benefit of less number of competitors and service providers as it is in case of Educational Institution and so on.

Similarly,in other sectors including Manufacturing and Agricultural ,this can’t be applied.Supply of a good is more and demand is less,it never means that the price should be less because Govt can pass such rule to increase price in order to secure producers.If supply of good is less and demand is more,it never means that the price should be more because Govt can pass such rule to decrease price in order to secure consumers.

Only in Arbitrary Market and Arbitrary Economy,my formula can’t be applied.Because nothing is problem to implement this formula.No inflation and deflation is going to happen.Only arbitrary is going to be abolished.I have talked about Arbitrary Market in my previous article already.

There will be very less depression and deflation if Govt increases the price in case of Higher Supply and Lower Demand and very less Inflation if Govt decreases price in case of Lower Supply and Higher Demand.There will be no revolving of Great Depression Of 1929.It’s so because what we will supply,we can supply by increasing slow price also in case of Higher Supply and Lower Demand because some increasing can’t effect the affordability power of consumers because Higher Supply already decreases price very much.In case Of lower supply and higher demand,by decreasing slow price,we can reduce inflation and price can be decreased because this can’t effect productive power of producers as producers have to bear very less decreasing because Lower supply increases price very much. Please use Aggregate Supply and Aggregate Demand for this para.

I want to say that the Law Of Demand and Supply is Arbitrary.We can’t co-relate demand and supply in such manner to get over benefit which is done presently by the producers and service provider and on the other hand,we can’t depress producers and service providers in case of Higher Supply but lower demand.

Only the Law Of Demand and Law Of supply is true,if they are seen separately,not seen togetherly as seen above by Rahul Gandhi and present Economics.

Law Of Demand explains the consumer’s desire that Higher The Price,Lower the Demand and Lower the Price,Higher The demand and Law of Supply explains the producer’s desire that Higher The Price,Higher the Supply and lower the price,lower the supply.So both are true because a consumer will demand more if price is lower and vice versa and a producer will supply more if price is higher and vice versa.Although, Law of Demand and Law Of Supply can’t be applied in certain economy,which i will discuss in my next article.