Question

Suppose we are analyzing the global market for ideas. Use the demand-supply framework to describe the demand and supply of ideas. List some shift factors that have impacts on demand and supply of ideas.

Answer 1

The supply of Ideas in the real world is coming form the Universities, research and development centers, think tanks and scholars.

The demand for these ideas are by the government, business houses, corporations, even individuals who want to make an informed choice and other institutions who are working in different fields.

A shift in the supply of ideas will occur when we have a more educated population, human capital, and if we are spending more on the education sector and research and development. All this factor will shift the supply curve to the right and if there is increasing job losses, poverty, and disasters will shift the supply curve to the left.

A shift in the demand curve will come when more and more institutions are opening up to the new and rational ideas, as the demand for ideas are unlimited and inelastic.