• Economics

    Do Supply and Demand Define Economic Value?

    Economists have taught us that nothing by itself has intrinsic value. The value, according to them, rather depends on supply and demand for that thing. If the supply is high and the demand is low, then the value automatically decreases. Conversely, if the demand is high and the supply low, then the value automatically increases. This idea has led to the notion that monetary value is a figment of our collective imagination; that there is nothing intrinsic in nature that has monetary value, and therefore economics isn’t the study of intrinsic value but rather the study of how humans perceive the value in things based on supply and demand. This…