Friday, March 21, 2014
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?
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