Журнал глобальной экономики

Economics Theory of Supply and Demand Outdated

Abstract

Priyanka Saharia*

This paper shows that the traditional supply demand model that is the basis of all the modern day economic theories, models and fundamental inferences is wrong. The real supply curve complements, accentuates and follows the demand curve as the supply is always demand driven and not profit driven. This old model, predated to pre-industrialization that has been used for centuries has to be replaced by the corrected new model that accurately reflects the modern day markets and in not in conflict with them.