How much supply should a supplier supply if a supplier could supply cookies?

This week in Economics, we learned all about supply, supply curves, factors of supply and more! We made supply curves, had a flood in Weserville, and made many charts showing how to find the perfect price for an object. Supply is the ability and willingness to sell an item, almost like demand but the opposite. Unlike demand, price and supply have a direct relationship instead of indirect, like demand. To me, supply seems like a very important part in economics. It affects what consumers buy and how much, plus how the suppliers will produce and at the rate with enough profit. It creates a good balance which amazes me. I know that consumers want low prices and producers want high prices, so the balance is truly remarkable. They can both compromise and settle on an okay price for each of them. After all the factors of supply to create the perfect price, they still depend on consumers to make them a profit. It's like a big circle. Do you know the factors of supply?

Ahhh Elasticity

This week we learned all about rubber bands, i mean elasticity. But the two really aren't so different. They both show the stretchiness, or in the case of economics, the sensitivity to which consumers or producers change their demand in response to price or income changes.  One can calculate it, and decide whether they should raise or lower their price depending on how they think the reaction will affect their sales. To me this seems pretty incredible, the power to change a price to get the most amount of money you can. We also were in groups to make an advertising ad for Weserville. We had to try to find the best factor that can change the demand for a product, and in this case it was Weserville. There were many exciting tv, radio and newspaper ads that all showed some of the factors. If you  were a producer of a product how would you change your price to make the best choice for the company?

The Week Overview

Since the snow days made less class time, this week, the Econ class focused all about demand. We learned about what we could DEMAND from other people, and how we must have the ability and willingness to buy this good or service. The law of demand helps tell us about the relationship between quantity and price. It can be shown on a demand curve or demand schedule. The curve always slopes downward, but can also move when the relationship between quantity and price is changed. They can be changed by income, complementary goods, market size, consumer tastes, consumer expectations, supplementary goods and substitute goods. I think this is an important topic because it helps people in business know what price to sell and the factors they have to work around to make the "perfect product" for the consumers. Do you think it is important?