Norman Macrae Youth Foundation NMYF -net of The Economist's pro-youth economist
He neither pretends to be promoting the public interest nor knows how much he may be promoting it. By directing that industry in such a way as to produce the greatest value, he intends only his own gain, and he is in this, as in so many other cases, led by an Invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of it. By pursuing his own interest he frequently Promotes that of society more effectually than when he really intends to promote it.
Adam Smith, 1776, Scotland.
|.As a Scot, I too feel interpretation of Adam Smith's self-interest statement cannot be fully valued without context of theory of moral sentiments. There I believe Adam clarified that in the community-based markets of his time: while a trader might fool some of the people all of the time, he couldn't fool all of the people. Therefore I interpret Adam's view of self-interest as including a deep sense of reputation/goodwill/trust which those who sustain a presence year in year out in a community market need to lead.
................................................................................The quote that I prefer to start introducing economics around comes from the final pages of Keynes General Theory. There he concluded that the greatest risk to future generations comes from arrogant old economists because some selection of such characters "are increasingly how the world is ruled". IF in 2010s , with such extraordinary technology and potential "abundance" because knowhow can multiply value in use unlike scarcity of things consumed up, YOU feel that the system is spinning wrongly when it is causing lost generations of youth, then you will need to hunt out what errors 20th economists designed into the systems that are compounding risks and loss of trust today. My father's Norman Macrae's lifetimes diaries at The Economist make a terrifyingly long list of such errors. Top-down macroeconomics is by far the more guilty of the two. It is mathematically careless to ignore Einstein's warning: always prepare to map interactions at more micro levels if you want to prevent being trapped in a science whose over-standardised assumptions have more errors than its high priests (let alone politicians!) consciously understand...
this video draws typical curve of quantity demanded as function of price
this video discusses how the curve of current quantity demanded (case ebook) may shift if people have information that prices are likely to rise or fall
this video looks at what will happen to the curve if price of a substitute product goes up or down- it also introduces issue of changes in related product (case kindle needed to display ebook)
this video discusses change to quantity demanded curve if population income changes, or if population goes up, or if people's tastes (or news of ebook) changes
this video discusses how quantity demanded is likely to be changed by rising or falling incoe regarding "normal" versus "inferior" products (how people trade up if income increases and vice versa)
this video discusses change in demand by variation of income for a market with inferior (cheapest), normal and superior product (most expensive)
this video talks about curve of quantity of supply if price changes as all else stays equal
this videodiscusses some variables that might change quantity supply curve- price of inputs, related goods, number of suppliers, technology, future expectation of prices