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Economics 101

Q. What drives the market supply or demand?

A. The market is driven by demand. If there is no demand, no one will buy the good no matter the quantity of supply.

Q. Are wealthy people required for a free market economy to work?

A. Wealthy people are not required for a free market economy to work. For a good business plan, funds are available from banks or the stock market to fund building the facilities required to supply a product or service.

Q. Who are the job creators?

A. Consumer spending makes up 70% of the gross domestic product of the US. If people do not have jobs and thus income, who will create demand? High income earners invest a larger percentage of their income and thus produce a smaller demand from their income than lower income earners.


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