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The rubbersheet economy (as a dialogue): 1. Prices move according to the law of supply and demand. 2. Right: why do they move though? 1. Simple: every hour t
by baghira 11y ago
The rubbersheet economy (as a dialogue):
1. Prices move according to the law of supply and demand.
2. Right: why do they move though?
1. Simple: every hour the central government determines the current supply and demand for all goods, and computes the right price.
It looks like a market economy, the prices move in the right direction (the balls are "attracted" to each other), but the explanation is a planned economy (the effect of Earth gravity).