Economics, what is it ? Well, from what I know economics is a lot of things. There is supply and demand, socialism, capitalism, goods, services and much more. Today I am going to be talking about some of the really big things in economics… supply and demand, goods and services and needs and wants.
Supply and Demand
Supply refers to how many of a certain product of good is available. For example, let’s say there are 200,000 new iPhone X’s, but there are 300,000 people who want one. How many people want the iphone and how much they want one is called demand. This means that Apple is going to raise their prices so that they will get more money, and so that when they do make more they can raise their prices again and they will get even more money because so many people want one. But if they have 400,000 iPhones and only 100,000 people want one than they will have too many, and lower their prices by a lot. This is why things go on clearance in stores. In conclusion, as prices rise product supply rises because people buy less, and as prices lower product supply lowers because people buy more.
Goods and Services
Goods are defined as anything that anybody wants or needs. Some examples of goods are a TV, a computer, a phone, designer clothes, etc. Services are the performance of any duties or work for another, some examples are education (teachers), health (doctors), transportation (bus drivers), etc. Goods and services are related because sometimes I will babysit my sister for some sort of reward, like $10. That’s what jobs are… people do services (Their job) in order for goods (Money).
Needs and Wants
We all know what needs and wants are. Needs are things that are critical in order to survive… like food, shelter, clothes, transportation, etc. Wants are things that you think you might need, or want for pleasure, you need food but you don’t need lobster and steak every night. You need shelter but you don’t need a mansion or a vacation home. You need clothes but not designer clothes. You need transportation but you don’t need a Porsche or a BMW. Get the idea?
Hopefully you learned what economics is, and some things in it. There is so much more that you can learn about economics. Comment what you thought about this post. Happy Blogging !