Economics mean social science that works to explain how goods and services are produced, distributed, and consumed using scarce resource to satisfy unlimited needs and wants. In economics class the big things that I learned about is the Law of Demand and the Law of Supply and there are other things too that I learned like Value, Opportunity cost, Capital goods vs Consumer goods, goods vs Services etc.
The law of Demand is that as all the factor remain the same, when the price of the goods/services is increase the demand of that goods/services is decrease. As the price of the goods/services is decrease the demand of that goods/service is increase. So there is an inverse relationship between price and demand.
The 5 shifters of demand are:
1. Number of consumer
2. Related goods (supplement vs complement)
3. Taste/ preference
4. Income
5. Expectation
The law of Supply is that as all the factor is remained the same, when the price of the goods/services is increase there is an increase quantity in supplied. When the price of the goods/services is decrease there is a decrease quantity in supplied. So there is a direct relationship between the price and the quantity.
The 5 shifters of supply are:
1. Number of producer
2. Technology
3. Tax/ subsidies
4. Price of resource
5. Expectation
If you want to see my project about the Law of supply please click on the phrase below.
Below is value and opportunity example
