Economics: Economics and Principle Essay

Submitted By terry15
Words: 339
Pages: 2

Principle of Supply and Demand
Theresa "Terri" Williams
XECO 212
January 11, 2013
Hamsa Wilson

Principle of Supply and Demand.
In this paper I will decide which principle plays a major role in my decision of buying a house. I will provide examples for each showing the interaction, decision making and the workings of the economy that I have made to decide which and where I buy a home. I will explain how the influence the marginal benefits and marginal cost associated with the decision to purchase a house.
The first important principle that I would use is the second principle which states The Cost of Something is what You Give Up to Get It. I believe in this principle that needs a house you would have to save up and make sure you can afford it later in the years to come. This principle for example you would have to decide in years to come what is important the most a car to get around or a house to live in with your family. This principle also would be where you would decide in the house what you need or you do not.
The next principle would be six which is Markets Are Usually a Good Way to Organize Economic Activity. I believe that this one would be important also because when you buy a house you would have to decide the market and where you want to live if deciding to get loans you would have to decide how to pay them off over the years.
The last thing I will discuss about buying a house would be inflation, marginal benefits and marginal cost that is…