Chapter 5

Chapter 5 was similar to the last chapter as far a difficulty went for me. I understand the concepts of elasticity for supply and demand, and it was actually something I was wondering about in chapter 4, specifically, how charging more or less can maximize profits. I would give the chapter a 1.5 because some of the more in depth topics were hard for me to understand the first time around. I now know how a supply or demand graph could be curved and not just a straight line. Obviously some goods are more elastic than others, as I'd be willing to pay a lot for water to drink, but not a lot for a scoop of ice cream. The math this chapter seemed simple but some of the graphs were a bit confusing, especially because there were so many of them. I also noticed how it would be hard to accurately judge where to set your prices in a business, more so if it is a small one.