Today in class we talked about Supply & Demand.
Looking at a simple chart of the relationship between the quantity of burritos eaten, and the price of the burritos showed us how much information we can obtain from a chart. One of the main points I took away from class was that price is constant and given in a chart and graph, and our behavior is the same, always, according to the Law of Demand. This behavior is that if prices go up, we will buy less. WHY? Because when prices go up we are poorer, so we spend less. Also, when we are deciding whether or not to purchase something, we aren't choosing between having "6 quarters" in our pocket or a burrito, we are choosing between whatever else we could buy with "6 quarters" and if we value everything else more than the burrito. So really, price should be re-named as trade-off.
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