Economic Icon: Chris Biehler

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April 24th 2011
Eco 111
Economic Icon- Chris Biehler

Economics is the social science that deals with the allocation of scarce resources, working to obtain the greatest satisfaction from society's unlimited wants. Many factors that deal with economics is the concepts of demand and supply. While most people may not really realize how economic takes place in their everyday life, while it is very obvious that it does. My job of working at a McDonald's is very much related to what I have learns in our economic course. The law of Demand states that the quantity of demanded of a good or service is inversely related to the price of a good or service. To have a demand for something you must be willing and able to purchase the good or service at the various prices during that time period. This is related to my job in many ways. There are five factors that make up the non-price determinants of demand, Income, tastes and preference, the price of related goods, expectations and population. So with the concept of demand if a person wants McDonald's then they must be willing and able to pay for the food and services. The first nonprice determinant being income. If a persons income changes they may not come to McDonalds as much anymore because they can now afford nicer good or services. Making a McDonald's an inferior good. An Inferior good is when there is an inverse relationship between income and demand. Another example may be now that your income has increased people may come to McDonald's more and buy a larger quantity of food, making it a normal good. Another determinant would be tastes and preferences, if people get in the mind set and McDonald's may cause obesity may increase, the demand for McDonald's may decrease while the demand for a healthier product may increase. Another example is price of related goods. The two types of related goods are substitutes and compliments. For example if price was to increase at McDonald's then people may go to Burger King to...
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