Supply

Supply! The opposite of demand. We learned that a supply curve will always slope upwards, and the 6 factors of supply, among other things. So think of it when we go out to buy something, let's say Starbucks as an example. You go out to get a large cup of coffee or whatever you call it, and it costs $6.00 for a single cup. A person would say the supply for Starbucks is high, because it is popular, and expensive. The quantity demanded is also high, as I see so many people walking around holding Starbucks. The price between supply and demand balanced around 6$. Now for something which has a less price, because the quantity supplied is lower would be McDonald's, and their McCafe or something. Due to the fact that consumers are out for their own self-interest, suppliers have the ability to manipulate prices so consumers can come buy their goods and services. It depends on the producer. Demand and supply depend also on one another, for the self-interest of the community.

Inelastic vs. Elastic

This week has been about elastic products and inelastic products. To be an elastic product, the change in price has to result in a relatively large change in quantity demanded. As for inelastic products, the change in price has to result in a relatively small change in quantity demanded. It disturbs me a bit how the economy can manipulate the prices of an inelastic product, and no matter the price, it is still a valuable necessity and the community is influenced to buy it. But I suppose that's how the economy gains its money. 

Demand Curves

This week, or I should say, the past two days have concerned demand and change. Demand is inversely related, so that when the cost of an item increases, the amount of people who will purchase that item decreases. I'm positive we have all seen this, whether it be a pair of shoes that could not possibly be priced at 100 dollars or a video game that costs 200 dollars for just the cd version. We have all turned away a product, simply because of the price. I believe this to be a continuing factor in all our lives, as we will continue to compare and contrast prices and see which most benefits us. Again, we buy in our own self-interest and consumers are really what control the economy. The choice of a company lowering or raising the price of a product is entirely up to the consumers.