Wednesday, May 20, 2009

Supply and demand/ Economics

Supply and demand

There are at least there are at least two people involved in the supply and demand process.There is the supplier who supplies the goods ,there is the consumer who purchases the products.The relationship between these two people are that the consumer could not purchase the products if the supplier hadn't made them and the supplier couldn't sell the products if the consumer would not buy them.
The consumer is most likely to buy the product if it is A: cheaper or B: won an award ETC. or C: Been endorsed by a celebrity ETC. That is when the producer will increase the price and increase the quantity of goods they are producing. Also the the market effects the quantity sold as well.
Above is a supply and demand graph explaining the supply and demand.
Where the supply and demand lines meet is called the equilibrium point.

Economics is the trade ,production and consumption and of goods and services. So economics is important because without we wouldn't be able to trade and recieve each others goods and services that we must have to live.

Thanks to brainpop for some of this information.

1 comment:

  1. Well written and I like your Abodo!
    Got any references for your research ?
    Thank you for commenting so eloquently on our blog :-)