lb:basic.economics
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| lb:basic.economics [2025-11-14 15:18:34] – [Basic Economics] ninjasr | lb:basic.economics [2025-12-29 18:42:21] (current) – Minor formatting changes. ninjasr | ||
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| It's also a bit ramble-y, which I'll fix eventually I swear. | It's also a bit ramble-y, which I'll fix eventually I swear. | ||
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| + | I //am// planning to make another article on currency, but when that' | ||
| ===== Supply & Demand ===== | ===== Supply & Demand ===== | ||
| - | The absolute basics of all economics starts with **Supply** & **Demand**. If you do not understand these fundamentals, | + | The absolute basics of all economics starts with <dfn>Supply</ |
| Supply & Demand are less of a strictly economic law and more of a //law of nature// that manifests in the economy. | Supply & Demand are less of a strictly economic law and more of a //law of nature// that manifests in the economy. | ||
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| What's a bit more complicated – and what needs to be grasped – is // | What's a bit more complicated – and what needs to be grasped – is // | ||
| Supply & Demand want to exist in a state of equilibrium. This is the ideal state where the supply perfectly matches the demand for it. That state is also difficult to reach.\\ | Supply & Demand want to exist in a state of equilibrium. This is the ideal state where the supply perfectly matches the demand for it. That state is also difficult to reach.\\ | ||
| - | If they are not in a state of equilibrium, | + | If they are not in a state of equilibrium, |
| - | At this point, ‘value’ is represented in **price** which is expressed in a given **currency**, though neither of those are technically required for understanding how supply & demand works. | + | At this point, ‘value’ is represented in <dfn>price</ |
| If the demand is higher than the supply, then the price of the supply increases. By increasing the price, the demand lowers because those demanding it are gradually less willing to obtain the supply.\\ | If the demand is higher than the supply, then the price of the supply increases. By increasing the price, the demand lowers because those demanding it are gradually less willing to obtain the supply.\\ | ||
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| Technically – and I know this might be controversial – you might not even necessarily need to know how to count to understand the economy. This is because all the numbers and prices and whatnot are just ways of making it easier to picture Supply & Demand in action. If you understand it intuitively, | Technically – and I know this might be controversial – you might not even necessarily need to know how to count to understand the economy. This is because all the numbers and prices and whatnot are just ways of making it easier to picture Supply & Demand in action. If you understand it intuitively, | ||
| ===== Money ===== | ===== Money ===== | ||
| - | Money is just a representation of ‘value’. It's a bit more complicated than that though, but I'm gonna keep the explanation brief. | + | <dfn>Money</ |
| We represent ‘value’ in money because, for the purposes of trade, it's convenient. That's it.\\ | We represent ‘value’ in money because, for the purposes of trade, it's convenient. That's it.\\ | ||
lb/basic.economics.txt · Last modified: 2025-12-29 18:42:21 by ninjasr