Final answer:
Economists would expect the price and demand for Susie's artwork to interact based on market perceptions, which could initially increase demand with higher prices. According to Say's Law, the sale of the artwork would generate income and thus demand elsewhere in the economy. Additionally, public artwork can be viewed through the concepts of public goods and externalities in economics.
Step-by-step explanation:
When Susie displays a work of art in a public place, economists would expect a few different potential outcomes. Firstly, they would look at the artwork through the lens of demand and supply. If the artwork becomes highly valued, its price might increase thus attracting more attention and potentially more demand due to perceived value—from the viewpoint of economics, known as the 'Veblen effect'.
However, this effect has limits; extremely high prices could eventually reduce demand. Secondly, economists would consider the income generated from the sale of the art, in line with Say's Law, which suggests that a value of supply (the artwork) will create equivalent value of demand in the economy—someone gains income from the sale.
Public display of art also touches on public goods and externalities—economics concepts wherein individuals cannot be excluded from consuming the art and where display of art may benefit or affect others without a direct economic transaction. Furthermore, the act of creating art itself feeds into the broader macroeconomic picture, contributing to GDP and reflecting cultural value which might not be directly measurable in economic terms.