1-Economics can be summed up as what people want how available the products are that they want. Meaning if they are willing to pay for it then the demand will be there but if the customer does not want to pay for the product then the demand is lost and the price will fall. Just like gas prices people tend to watch where the prices are lower and they go to that service station that has the lower. This has nothing to do with the gas itself but the station weather it is Shell or Exxon or even BP. They want the cheapest gas available. Economics is made up of two types’ micro and macro one looks at the individual and the other looks at the needs of the many
2-Supply and demand is one of the oldest forms of economic practices recognized and practiced by the world community. Supply and demand is simply put an economic practice where costs are driven by what product is readily available to those that are not. I remember in an earlier class discussion where the analogy of supply and demand was a shortage in any given product such as bananas. Let’s say the country that supplies the most bananas has a bad season due to weather or some other result and cannot deliver as many bananas as previous. This will drive the demand for this product up which trickles down to the price going up for such a scarce product. Our text presented a similar version of hurricane Katrina where oil production was hindered thus causing less production. This drove up the cost of oil which inevitably trickled down to the consumer.
THESE QUESTIONS ARE ASKED BY MY TEACHER. PLEASE DO NOT COPY FROM ANY SITES ANSWER THEM IN YOUR OWN WORDS. THANKS.
- 1-Can you think of grocery or shopping examples involving economic thinking concepts, like opportunity costs, trade-offs, and marginal thinking?
2-Do you see why scarcity the prerequisite for economics? Do you see how this leads to the concept of trade-offs? How does the concept of trade-offs lead to the economic concept of opportunity costs?