Simulating the «Law of Supply» Formulation to Evaluate Its Accuracy
The paper shows, why frequently occuring phenomenon of supply growth as a consequence of price growth should not be considered a manifestation of the Law of Supply. Further the author provides evidence, that business companies should not base their practices on the so-called “Law of Supply” because of its invalidity. To find out, why Economic science has adopted and up to now continues to back and promote the concept, expressed by the Law of Supply, the author makes an attempt to simulate the very process, through which the Law of Supply was coined, and to reveal the real reasons of its adoption. After investigating various ideas and hypotheses put forward by economists to prove the Law of Supply accuracy, the paper concludes, that the Law of Supply introduction to the domain of Economic science can be explained by nothing else, but determination of he, who has formulated the Law, to provide relevant arguments explaining the phenomenon of market economy equilibrium, notwithstanding the inconsistency of the Law itself with real-world practice.