You are watching the news when someone says, “Higher gas prices should lower demand.” How do you evaluate a statement like that? This guy is on television, so he must know what he is talking about, right? Don't be so sure. Many intelligent individuals throw around economic arguments using economic terminology and may even sound convincing, but there is a lot of bad economics going around! In order to make informed decisions and not be easily swayed, it is important to understand economics. To have a good understanding of economics, you must have a grasp of supply and demand. The concepts are central to even the most complex of economic arguments, yet they are easily understood.