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Is economics hard? I always found it to be very easy, but I also have a hard time telling if something is hard for other people.
I just can't understand how so many people can't understand what is the equivelant of ABC in economics.
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yeah, because price is a free market mechanism to show producers what consumers value, and consumers what the producers need to continue producing. if producers can't raise prices to compensate for higher costs and/or lower demand, then they'll stop producing, because it now loses them money to make and sell the product. it's simple supply/demand. and then if that happens, no one gets the product.
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