Wednesday, July 23, 2008

The play of supply and demand

We have studied how supply controls the demand and how prices are influenced by both supply and demand. But can we educate masses to properly regulate their demands so that the prices can then be fairly stable.

we can work more efficiently if we are united and the feeling of united comes when there is common goals. Common goals are generally the over all fear with nobody having any specially escape route. Like what happens when there is any natural calamity or nations in war. There situations unit people more. And if the communication is good then a common goal, escape plan can be planned. But seeing things on micro level, suppose in a building with 50 families, if we tell people to use the water adequately as chances of water scarcity is there today. There family will actually start filling more water. And the water would actually be used up more early as predicted. Same logic can be applied to food grains or petrol or anything.

why do we behave in exactly opposite way? When a person is shy he behaves in different way which actually attracts more attention. The very action made to avoid a situation is actually triggered by that action. If we understand all this, I think to some extent things can be easier.