Economics Related to Life
Economic Relations to Life
Cori Northcutt
ECN220
Laura Sheneman
January 23, 2013
Economic Relations to Life
The principles of economics, supply and demand, and consumer surplus all relate to people’s lives daily. The three of these economic situations relate to my personal life because I have to make purchases for my daughter and I am working at seeking a higher education, the shopping at Christmas time completely affects me because my family celebrates Christmas, and going back to college.
The Ten Principles of Economics breaks down into three main sections: “How People Make Decisions, How the Economy Works as a Whole, and How People Interact” (Slembeck, 2006). One of the specific principles is “People Face Tradeoffs” which implies “to get one thing you have to give up something else. Making decisions re quires trading off one goal against another” (Slemback, 2006).
I feel that this principle fits my life because I decided to go back to college to be able to get further in my career. In making this decision I had to give up some time with my daughter. Although, I am bettering both of our futures, I am also giving up quality time with her. Instead of coming home to spend the rest of the night with her, I am spending it fifty/fifty between her and school. In this sense I am falling into the “people face tradeoffs” principle.
The law of supply and demand states that it is “a theory explaining the interaction between the supply of a resource and the demand for that resource” (“Law of Supply and Demand”). “The economic theory suggests that as demand increases, sellers will be able to increase prices of scarce products” (Perner, 2008). This effects people during the holiday season because people are demanding more of a product so they are willing to pay more to get a gift for someone. Around the holidays sellers also stock up on items to ensure when prices are lowered or raised people will be in such demand for items that they will buy more than not.
Cori Northcutt
ECN220
Laura Sheneman
January 23, 2013
Economic Relations to Life
The principles of economics, supply and demand, and consumer surplus all relate to people’s lives daily. The three of these economic situations relate to my personal life because I have to make purchases for my daughter and I am working at seeking a higher education, the shopping at Christmas time completely affects me because my family celebrates Christmas, and going back to college.
The Ten Principles of Economics breaks down into three main sections: “How People Make Decisions, How the Economy Works as a Whole, and How People Interact” (Slembeck, 2006). One of the specific principles is “People Face Tradeoffs” which implies “to get one thing you have to give up something else. Making decisions re quires trading off one goal against another” (Slemback, 2006).
I feel that this principle fits my life because I decided to go back to college to be able to get further in my career. In making this decision I had to give up some time with my daughter. Although, I am bettering both of our futures, I am also giving up quality time with her. Instead of coming home to spend the rest of the night with her, I am spending it fifty/fifty between her and school. In this sense I am falling into the “people face tradeoffs” principle.
The law of supply and demand states that it is “a theory explaining the interaction between the supply of a resource and the demand for that resource” (“Law of Supply and Demand”). “The economic theory suggests that as demand increases, sellers will be able to increase prices of scarce products” (Perner, 2008). This effects people during the holiday season because people are demanding more of a product so they are willing to pay more to get a gift for someone. Around the holidays sellers also stock up on items to ensure when prices are lowered or raised people will be in such demand for items that they will buy more than not.
References: Slembeck, T. (2001). Principles of Economics. Retrieved January 23, 2013 from http://www.slembeck.ch/principles.html Law of Supply and Demand. (2013). Investopidia. Retrieved January 23, 2013, from http://www.investopedia.com/terms/l/law-of-supply-demand.asp#axzz2IpOe6Kvg Perner, L. (2008). Supply, Demand, and Holiday Shopping. Retrieved January 23, 2013, from http://chinatrip2002.consumerpsychologist.com/Holiday_Shopping.pdf Riley, G. (23 September, 2012). Consumer Surplus. Retrieved January 23, 2013, from http://www.tutor2u.net/economics/revision-notes/as-markets-consumer-surplus.html Example of Calculating Consumer Surplus from a College Education. (2009). Retrieved January 23, 2013, from http://www.freeeconhelp.com/2012/04/example-of-calculating-consumer-surplus.html