Jamar S. Matela
BS-Psychology II Prof. 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 II Prof. 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 II Prof. Maria Salome Desoloc
1.What is being sold?
This pictures was taken at Tanay Public Market where in this stall is