How Demand Drives the Economy

Definition of demand. Why America is the world's best customer, and how that might change.

What elastic demand is, and how elasticity of demand affects you.

Inelastic demand is when people's buying habits don't change, even when the price does.

What is in demand in the U.S. economy.

How demand and supply work together in a healthy economy.

If demand is too strong, it can lead to higher prices and inflation. Find out the answers to some frequently asked questions about inflation, how it affects you, and what the government is doing to prevent it.

The textbook cause of inflation is when too many dollars are chasing too few goods. However, this is just one of six causes. Without knowing the specific cause, policymakers can provide the wrong cure, and make inflation even worse!

An asset bubble is when there is too much demand for any asset class, such as oil, gold or even housing. Find out how to detect an asset bubble and how to protect yourself.

The U.S. demand for consumer goods and cheap oil has created a trade deficit. Find out how large the deficit is, what the components are, and who the major trading partners are. Learn what negative impact an ongoing trade deficit could have on the U.S. economy and your way of life.

Retailing's impact on the economy.

Retailing's impact on the economy.

Find out the statistics on total consumer debt. The trends show that families cut back on credit card debt during the recession, and are now taking on student loans to invest in their own education.

Too much demand creates inflation, which ultimately reduces your standard of living.