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Supply and demand:An Introduction

                         Supply and demand:An Introduction

  The stock of the foodstuff on the hand at any moment in New York City's grocery stores,restaurants,and privates kitchens is sufficient to feed the area's 10 million residents for the most a week or so.Since most of the residents have nutritionally adequate and highly varied diets,and since requires that millions of pounds of food and drinks be delivered to the locations throughout the city each day.

      No doubt many New Yorkers,buying groceries at their favorite local markets or eating at their favorite Italian Hotels,give little or no thought to the nearly miraculous coordination of the people and resources that is required to feed the city residents on a daily basis,But near miraculous it is,nevertheless. Even if the supplying of the of the New York city consisted only of transporting a fixed collection of the operation ,requiring at least a small (and well managed)army to carry out.New York relies on a complex system of administration to allocate the housing units but leaves the allocation of food essentially in the hands of the market forces ----the forces of the supply and demand.Although intuition might suggest otherwise,both theory and the experience suggest that the seemingly chaotic and unplanned outcomes of the market forces can in most cases do a better job of all allocation economic resources than can (for example) a government agency,even if the agency has the best of intentions.

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