economics???????????????????????

Coolguy11: economics???????????????????????
In economical terms, I don’t understand what supply and demand means??

And how come communism has no supply and demand?
What about socialism? Thanks!

Answers and Views:

Answer by Runner45

Answer by Bryan
Well it is pretty simple. Supply means how much a company has in stock, for example, if Wal-Mart has a good supply skittles then they don’t need to get anymore, but if they aren’t in good supply they need more, that is called demand.

About communism. Communism is a whole different kind of market than the U.S. is. We (the U.S) have a free enterprise market, or also called capitalism, that means people may own privately owned companies with no government control whatsoever. Socialism and communism are markets where the government controls everything, the businesses, the pay, who works where, how long they work there. Communism in a way works, but is very disliked by hundreds of millions if not 3 billion or more. Communism has no supply or demand because they control everything as I said, that means they say when you bring something in to resupply. The business has no control.

Answer by Bridget
In communism, the government has complete control of what to produce and how much to supply. Thus, supply and demand interplay typical in a capitalist economic system do not apply in communism.

Answer by Dave B
In its simplest terms, supply means sellers, demand means buyers, except that in the marketplace you are talking about price asked versus price paid, not necessarily individuals. More sellers than buyers, price goes down. More buyers than sellers, price goes up.

Easy so far?

Communism DOES have supply and demand give and take, hence the virulent black markets in communist countries and the pervasive corruption. It does not take long for people to subvert a system where market forces are being distorted. All quota work does in the end is shift the supply curve.

Socialism merely changes the payer to a third party, usually the government, but sometimes a pseudogovernment private agency like Freddie and Fannie, and insurance contracts are essentially socialist. That doesn’t necessarily create a black market unless the tax bill is underfunded for the purpose, but it surely increases the instances of fraud and drives prices upward as disinterested parties take bids on what eventually become cost plus contracts with insufficient scrutiny.