Economics and My Daily Life
Economics is a daily part of our lives I will be discussing how certain areas of economics affects my life these will include principles 2, 4 and 5of economics. I will discuss how supply and demand and consumer surplus are used in most areas of my life. My Economics class has given me a better understanding of how important economics is to our daily lives.
How Economics is used in my daily life There are 10 principles of economics and all of them are used in our lives but for the purpose of this paper I will be discussing how three are used in mine. …show more content…
Supply and demand “The principles of supply and demand play out every day for every person making purchasing decisions on goods and services, and in keeping or finding a job. Changes in circumstances or government mandates in any area of an industry creates a ripple effect of price changes through multiple industries to the end consumer.” (clark) Supply and demand affects my life in the area of shopping. I look for sales on items I want. The reason there is a sale is because the store has a large quantity of something and no one is really buying it. So if they put it on sale then people will purchase the items. I actually plan my weekly menu on the sale items. The other side of supply and demand is explained with the gas prices. Everyone is in demand for gasoline so the prices can go has high as they want and people will still purchase the gas. Unlike certain luxury items at least for me if I want a new car I wait till the new model for the next year comes out and is in high demand then I purchase the last year’s model at a