Social Science

Topics: Supply and demand, Economics, Opportunity cost Pages: 2 (257 words) Published: January 14, 2013
SS 3
Jamar S. Matela
BS-Psychology IIProf. Maria Salome Desoloc

The Law of Demand
The law of demand states that, if all other factors remain equal, the Higher the price of a good, the less people will demand that goods. In other words, the higher the price, the lower quality demanded. The amount of a good that buyers purchase at a higher price is less Because as the price of a good goes up, so does the opportunity cost of buying that good. As a result, people will natural avoid buying a product that will force them to forgo the consumption of something else they value more.

Example:
An example is butter, which can be substituted for margarine when the price of butter increases.

SS 3
Jamar S. Matela
BS-Psychology IIProf. Maria Salome Desoloc

Law of Supply
The law of supply is tendency of suppliers to offer more of a good at a higher price am not really good at economic; hope this can help you a little bit.

Example:
The recent Cash for Junkers program is a good example. Demand for new cars dropped because of the failing economy. Manufactures stopped making cars (creating sully). The government offered incentives to trade in your old car for a new one, and created a demand. The car manufacturers responded by creating more supply.

SS 3
Jamar S. Matela
BS. Psychology IIProf. Maria Salome Desoloc

1.What is being sold?

This pictures was taken at Tanay Public Market where in this stall is selling
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