What we learned this week!

Hello! Did you guys enjoy your snow days? Because of unexpected days off, we only had 3 economic classes this week and therefore we couldn't learn much :( BUT! We started learning about new fun material which is DEMAND = desire to have and the ability to pay. For example, if you want some chocolates, and you have enough money to buy them, it is DEMAND. BUT,if you want new house, but you don't have enough money to buy it CAN'T be called as DEMAND.People tend to buy more when price of stuff is lower, and buy less when price of stuff is higher = LAW OF DEMAND. To understand these shift, we can use DEMAND SCHEDULE = a listing of how much of an item an individual is willing to purchase at each price and DEMAND CURVES = graph that shows the data from a demand schedule. 

ex)

Remember that demand curves always go downward :( <--

Demand curves are important to our business both producers and consumers because producers can know when they need to lower or higher a price of product, and consumers can know when a price of product goes up or down, and when to buy it. 

Demand affects our daily life too. For example, when producer sell new smartphones, he will put price little higher on them because they are new and have many attractive features that he expects many people will buy them. Then later, he will lower a price of them because they are not new anymore, and many other new smartphones will come out by then OR only few people bought them. And people who want to buy these new smartphone might wait until the price goes down, which means quantity of the smartphone will goes up. 

We are going to continue learning about demand next week and also we are going to have fun project to do!