Video, Invisible Hand: the Economics of Daily Life
Produced by Marcom Projects (2004) - Learnifng Seeds
economics is all about opportunities, we make economic decisions everyday and it may not have anything to do with money. Money is something that gets passed around and it circulates arund the economy. The Price of a product effects its demand, the price of a product helps balance supply and demand. Usually the higher the price of a product, the lower the demand so therefore the supply is lower. But that isnt the only factor people or the consumer respond to incentives like rewards, so they may pay a higher price for a products with incentives. When the product being purchased involves risk, if the rewards outweigh the risks the consumer are more likely to make the purchase, for example a certain home loan with a vairable interest rate.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.