Wednesday, May 20, 2009

Economics/ supply and demand.

Hi! Pinky here!

Right now we are in the I.C.T suite and we are learning about supply and demand.

While studying economics we were talking about the "supply" and 'demand" of goods. Goods are material things like bycicles,Cds, cellphones or cars or houses. Services are things that you need to have done, like car washes, house cleaning or golf lessons. We also studied the "relationship" between the consumer and the producer.

The consumer is kind of like the customer and the producer is the one who sells the goods or services.As you can see in this graph, we studied the Equilibrium point. The Equilibruim point is when both the supply and the demand are at a equal spot. As shown in green.

When the quantity of the goods is large. The producer usually lowers the prices
so that the consumers will buy more of them. However if a famous celebrity or someone who makes a big influence on us, sugests a certain brand game or item. The producer puts the price up because the consumer doesn't mind paying as much because the good is "popular".

I used the information from this site to form my opinion

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