Upon starting Microeconomics in the fall, I didn't have a clue as to what this class consisted of. Over the past 6 weeks I have learned a lot about how the economy works. Now I have a better understanding of the different factors that influence the supply and demand of a product. When I think of supply and demand, I think about popular gifts around Christmas time. During holidays, companies must make very important decisions to sell their product. Last Christmas there was a popular gift on the market, Sony's Playstation 2. Many people had this gift on their wish list because it was a hot commodity fresh on the market. The suppliers knew about the high demand for this entertainment system, and in exchange raised their prices dramatically because of the limi

Every economy must constantly decide how to allocate its resources. I've learned the two factors that determine this are price and the competitive market. For instance, the new popular energy drink called Red Bull was introduced about 3 years ago and was a big hit. As the demand grew, so did the price. Since there were no other producers of energy drinks at the time, Red Bull had the market cornered. The 8ounce can sold for more than 2 dollars, and was rarely on sale. Soon other producers came out with different energy drinks. The competitors marketed their drink to the same young individuals with a slightly lower price. Soon consumers were buying more of the competitors drink because of the lower price. This caused the price to decrease for other energy drinks. Now because of the competitive market, pro

Some common words found in the essay are:
Red Bull, Sony's Playstation, Tickle Elmo, Demand Society, Playstation Stores, energy drinks, supply demand, lower price, producers energy drinks, competitive market, red bull, 300 dollars, producers energy,
Approximate Word count = 551
Approximate Pages = 2 (250 words per page double spaced)