I like this brief essay because it supports my belief that no such thing as “supply and demand” exists.
The writer notes that consumers and producers don’t experience supply and demand directly. Instead they experience prices — which, in the event, are givens.
The producer of a good may set the price, but consumers decide whether to pay it or not. As a result, neither party is in full control of the outcome (for himself) of any specific transaction. This means in turn that the price of goods is separable from their cost of production.
Ultimately, the prices we see in the marketplace are just the prices previous buyers were willing to pay, or else they are prices that producers are testing to determine their sustainability. Simple as that.