Supply, Demand, and English Food

from Paul Krugman. His musings on bad English food.

So what does all this have to do with economics? Well, the whole

point of a market system is supposed to be that it serves consumers,

providing us with what we want and thereby maximizing our collective

welfare. But the history of English food suggests that even on so

basic a matter as eating, a free-market economy can get trapped for

an extended period in a bad equilibrium in which good things are not

demanded because they have never been supplied, and are not supplied

because not enough people demand them.

Supply, Demand, and English Food.

Reblog this post [with Zemanta]