sexta-feira, 6 de janeiro de 2012

Supply and Demand


One of the most basis concepts of economics is Supply and Demand. These are really two separate things, but they are almost always talked about together.

Supply is how much of something is available.

Demand is how much of something people want.

If more people want something, they will be willing to pay more for it. A good example is the newest basketball shoes. Everybody wants them, and they will be willing to pay more than they normally would to get them. The demand goes up.

Why? Because more people want them. The price also goes up.

Why? Because the seller knows he or she can get more money for the product because it is in demand.

In the same way, the price will go down when the demand goes down. When the new style of basketball shoes comes out, everyone wants the new shoes. The old shoes don't seem so new anymore. The seller still wants to sell those older shoes, since he or she has a lot still in stock. So, the price goes down.

Why?
The seller hopes that people will be willing to buy the older shoes at a lower price. After all, the older shoes aren't that much older or worse than the brand new shoes., everyone wants the new shoes. The old shoes don't seem so new anymore. The seller still wants to sell those older shoes, since he or she has a lot still in stock. So, the price goes down.

Why? The seller hopes that people will be willing to buy the older shoes at a lower price. After all, the older shoes aren't that much older or worse than the brand new shoes.


Vocabulary:
Supply and Demand = Oferta e Procura
Economics = Economia
To be willing to = Estar disposto a
Brand New = Novo / novinho em folha
Go downp = cair
Go up = Subir
Come out = Sair / Surgir

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