File talk:Economic-surpluses.svg

logically flawed

this graph has curves which seem logically flawed. the demand should never intersect the price curve, for example.—Preceding unsigned comment added by 82.43.47.6 (talk • contribs)

I'm not sure what that means. The demand curve covers all possible prices (even if demand is zero for most prices). Anyway, your objection isn't clear. CRETOG8(t/c) 17:46, 30 August 2008 (UTC)[reply]

I am not sure what the chart graph actually is representing either. Is is supply and demand or Economic surplus presentation..?. any which way it could be considered mostly one of those... if you believe the premise the rest is easy type of things, which modern economics relies on. Supply and Demand has been a useful myth for economics... for some time.. but no longer reflects mostly manipulated micro aspects now, restricted Supply never allows Demand a free avenue of expression. Actually, there is no ceiling to Supply except ability to produce, and no limit to Demand except ability to consume. Economic laws are not physical laws, neither measurable nor verifiable, (my opinion). The graph may be trying to represent some aspect of mainstream economics and would probably have been a good reference about a hundred years ago before economics theory was over come by energy conversion theory. skip sievert (talk) 22:14, 30 August 2008 (UTC)[reply]

The demand curve intersects the price axis. This is a non-discrete graph (no integers)... If the quantity sold of an item is close to 0, this graph is saying that if double that quantity is sold then the price barely changes. I suppose that could be possible, but it would violate the commonly accepted form of the supply/demand function. Basically the designer of this graph messed up his/her curves. They should be inverted -- going asymptotic near the axes. This was made in 2006, and no edits, with 100+ pages linking to it? Absurd. --Agamemnus (talk) 09:14, 25 February 2011 (UTC)[reply]

It is a standard textbook illustration, the likes of which are found in business schools around the world to illustrate the basic theory concerning supply and demand. Having Quantity (Q) at the horizonal axis and Price (P) at the vertical axis is also standard. The illustration merely illustrates the postulations that 1) Market Supply S (S = ΣMC = the horizontally added sum of the Marginal Cost functions of individual market suppliers) will be relatively lower in case the price of the product falls (low price: few companies will be able to make a profit and the rest leave the industry/go bust => relatively low total supply. High price: more companies will be able to make a profit in this line of business, even inefficient companies => relatively higher supply), and 2) that Market Demand (D) has an orientation facing the other way (low market price: relatively higher demand, vs. high market price: relatively lower demand), 3) that the Equilibrium Price is found at the intersection between the Supply and Demand curves, 4) the theory of Consumer Supply and Producer Supply. It is an illustration of a standard basic theoretical model as used in business schools, and it is of no practical value whether or not the Demand curve intersects the Price axis. The slopes of the two curves is also irrelevant, the slope of one of the curves could be half as high or ten times higher, it would still be the same basic price mechanism. 95.166.21.98 (talk) 07:24, 26 June 2013 (UTC)[reply]