Supply and Demand
As I read through the chapter my opinion of its difficulty kept changing. The initial ideas of supply and demand seemed easy enough, but once they were telling me about the way that the demand and supply curves change I started to get confused. Reading the summary at the end however reinforced the ideas I had/knew and I felt like I got a good reading on the chapter overall. I'd give it a 2, and I still need to review all the vocabulary terms that were used. The concept seems simple. Supply and demand are intertwined with prices and production. As the demand for a good goes up, so will the price. At first I thought that firms would just make more of that good and enjoy more profits, but the example the textbook gave related to scarcity. Because not everyone can get a certain product the prices will raise until the demand for the product drops and vice versa. If the demand drops so will the prices. An example that I could think of will be the new iPhone 7 that's coming out. People will wait in huge lines to pay 650$ for a phone because the demand is high. Once demand subsides then the price should start to drop.
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