Wednesday, May 20, 2009

Economics on the matai islands

Some people money makes the world go round and basically it does, with the markets also supply and demand. Supply and demand control all companys because when demand goes down so does there need for supply. Here is a diagram showing how supply and demand work.

As you can see the supply and demand affect the economy and the price. Also the consumer like you or me depends on how well the product will sell. If the product isn't something we need and it's too expensive we will just wait until the price comes down.

1 comment:

  1. I like the way you have drawn conclusions from the information you read. Well done - this is high level thinking.