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.
Yes, i totally agree with you that this will be a continuing factor in our future. We will have to be aware about many things concerning supply and demand. This can either hurt or help our economy in the future.
ReplyDeleteI agree with what you are saying. I also think that this is what causes exorbitant prices. People are concerned with making as much profit as possible and that means raising prices until affects how much demand people will have for the product. To some degree the consumers have control like you say, but when the product is a necessity, the consumer has little choice in the matter which can become a problem in situations such as medical issues.
ReplyDeleteI also agree with you that it will be a continuing factor in our future. We all want goods or services as cheap as possible, and I think that's why Walmart became such a big business in U.S. today. But it will be hard to decide products' that satisfy both businesses' benefits and consumers' benefits.
ReplyDeleteYou seem to have a great grasp on demand and the inverse proportions which fall under law of demand. We as consumers need to know how things are related to find the best quantity and price for our demands
ReplyDeleteIt is up to the consumers! Or companies that are too stubborn to lower prices and then go out of business... but that is not very economically beneficial, so we don't talk about it lol. But I agree with what you have said and the law of demand stuff and all that made sense.
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