> Dunno if they're fallacies so much as oversimplifications. No, they're far enough off of correct that I wouldn't even call them oversimplifications. The stat

> Dunno if they're fallacies so much as oversimplifications. No, they're far enough off of correct that I wouldn't even call them oversimplifications. The statement of the problem is wrong: The second assumption this chart makes is that the total cost of production increases as supply increases. That's simply not what the curve says at all. The curve isn't about any one producer making more of an item (as the Ford example given), it's about how producers with different costs are able to profitably add to the supply or not, based on the price they can get for the product. The review might be fine otherwise, but there's no reason to throw supply & demand under the bus to motivate it. In fact, if you frame it correctly (say, technical innovations have enabled more people to more easily write software, thereby shifting the supply curve to the right and lowering prices), you can still meaningfully analyze these situations with those curves.