The popularity of Sancerre has had a bit of a downside: It has contributed to the creation of some less-than-impressive wines from producers seeking to capitalize on demand, choosing quantity over quality.

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You see in your internal visualizer a chart of supply and demand, price and quantity, perhaps depicted as a large X on a graph with two axes.

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Unlike the classical gold standard, there is no market feedback mechanism to bring the quantity of money in line with the demand for money while maintaining long-run price stability.

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The increase in the demand for paper currency and gold not only had a quantity effect on the money supply but it also put upward pressure on the price of gold, which meant that dollar prices of all goods and services had to fall for the relative price of gold to rise.

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Higher prices being met with greater quantity demanded would seem to defy the law of demand.

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No legislator has ever overturned the law of demand, which says that when the price of labor rises, the quantity demanded will fall (assuming other things are constant).

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If the demand for agave sugars for bioethanol production grows as predicted, Valenzuala says, then the quantity of agave residues is likely to double in the next few years as well.

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In theory, a discretionary central bank could limit the quantity of money and achieve long-run price stability by controlling the growth of nominal final demand.

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Under a true gold standard, the optimal quantity of money is determined by market forces the money supply spontaneously adjusts to the demand for money, and long-run price stability is achieved.

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