In reflection of this lesson, the team focuses on the simple fact, supply is how much of an item there is, and demand is how many people want to buy something. The laws of supply and demand explain how the market determines the price and quantity of goods to be sold. The team discussed in a meeting how the defining factor to understand is how an increase in supply can affect demand and on the ways that an increase in demand can affect future supply. This is kind of a general definition, but it really coved a major part of Microeconomic. The team also discovered how fluctuations in supply and demand affect pricing.
Pricing and its affects
Pricing affects many factors that are directly in correlation to the ups and downs of Macroeconomics. Just to name a couple major Macroeconomics factors that are reflected by price is the number that are reported yearly in unemployment and gross domestic products. After reviewing in class the way supply and demand is formulated and graphed. It will help the team understand how Businesses decide the pricing of its goods and services. As an entrepreneur or a smart buyer, Understanding the process of supply and demand will help the team understand going all business going on around them in their day-to-day lives.
The Review of Week * The instructor clearly defined supply and demand. * The instructor describes the effects of supply exceeding demand. * The instructor gave examples of supply exceeding demand. *