Attempts to Repeal the Laws of Supply and Demand - The Market Strikes Back - Assignment Example

Attempts to Repeal the Laws of Supply and Demand – The Market Strikes Back Attempts to Repeal the Laws of Supply and Demand – The Market Strikes BackThe application of the laws of supply and demand to identify specific market constants are provided in accordance with the market forces. This law is applied in all constants, but particular elements are justified while analyzing the core policy initiatives aimed at repealing the use of this law. The universality of the laws of supply and demand is interpreted by natural occurrences within the market and shortcomings that result from interruptions would yield inconsistencies and ideally affect the natural flow of market entities.

Repealing the laws would ultimately distract the existing demand and supply shifts whose price controls are automated by product availability. Ultimately, the demand-supply coordinates are violated, hence shifting the curve principles outside the principle factors. The free market prices are fixed by the demand-supply laws; however when the law is not adhered to then this leads to what is known as cost distortion. While governments would impose price controls or create policies that would create crushing relationship between supply and demand, this would artificially distract the market mechanism.

Hence, the cost dilemma would alter the relevance of the commodities and may lead to specific losses and out- of-the- market experiences. The market’s response to this would be termed in a balanced experience. The price in such instance would not fall below a specific level, known as “Price Floor’ and an attempt to repeal this would constitute to ‘product vacuum’ and would create scarcity and eventually imbalances in demand-supply chain. From this analysis, Robert, (2005) explain that violating economic principles would create economic conflicts and this would seriously create persistent demand-supply problems.

References:Robert L. Vienneau, "On Labour Demand and Equilibria of the Firm", Manchester School, V. 73, N. 5, 2005: 612–619