Wednesday, May 20, 2009

Supply and demand!

We are learning about econimics and supply and demands. This is about the producer gaining profits and the consumer buying goods. This graph about supply and demand, it shows the supply and demand and the equilibrium point, the equilibrium point is when the consumer and the producer meet with the amount of goods being made and the amount being sold. They are in relationship with the quantity of goods. The producers wants to make money from consumers so lower and higher the price of goods so they are always making a profit. Sometimes producers stop making as much goods because people do not buy the product the price also goes down because they know that they cant make a profit. When they lower prices consumers buy heaps of the products thinking that the consumer will profit and the producer will lose money actually the the consumers altogether will buy more than the producer makes giving the producer the profit.
I learnt this from popbrain.

1 comment:

  1. That is so cool and groovy!!!!!!! come and comment on mine if you want