Chapter 6: Supply, Demand, and Government Policies

Chapter six seems interesting but difficult as well. The beginning of the chapter talks about control and prices and explains the terms price ceiling and price floor. One being the legal maximum a firm can charge for a good or service and the other being the legal minimum a firm can charge for a good or service in that order. Moreover, the chapter discusses how another type of price control, rent control, can lead to the dwindling of a real estate owner's rent cost. Once the price ceiling is under the owner's expectation, he or she may care less about the property. It also focuses on trends, for example, if the equilibrium price is above the price floor, then the price flooring is not binding. However, if the equilibrium price is below the price floor, then the price flooring is binding. Following, it states how evaluating price controls is aimed to help the poor but does more damage than actually benefiting them. Markets are good ways to organize economic activity. But, economist dislike the establishment of ceiling and floor prices.

Crisis Actors

This article discussed the subjects of conspiracies in the government and the truths of war. He makes the reader actually question these topics. While reading, I didn't understand why the author of the article had images and captions, but I soon realized it was used as evidence and examples to analogize situations that occur today. The author talked about Crisis actors, whose job is to act out and spread fear into the citizens and public during a period of time where they do not abide by the government's regulations. This article focused on how people can be manipulated and deceived by others in a higher authority and not notice their actual intentions. He also talks about how the purpose of public speaking isn't to inform but to convince people. It makes me think twice about what I hear on TV, Radio, or Social Media. I paid close attention to the image of Kennedy rioters. They protested because they wanted to know who assassinated the Kennedys but one guy stated that the protesters themselves were the murderers for complaining and pushing him to pass the Equal Rights Act.

Chapter 5: Elasticity and its Application

Chapter 5 is mainly about how economist find the precise measurements of how buyers and sellers react to a change in market conditions, also known as elasticity. For example, price elasticity of demand measures how the quantity demanded responds to a significant change in market prices, and some factors can determine the level of price elasticity of demand: availability of close substitutes, necessities versus luxuries, definition of the market, and time horizon. It is referred to as inelastic when the quantity demand reacts slightly to the change in price. One method to find the price elasticity of demand is by dividing the percentage change in quantity demanded by percentage change in price.

Chapter4: The Market Forces of Supply and Demand(250)

Chapter 4 is focuses on the forces of supply and demand in a market. A market is a group of people who participate in the purchasing of a specific good or service. There are multiple types of markets: monopolistic competitive, perfectly competitive, competitive, and monopoly. Each market is distinguished by its competitiveness and if buyers and sellers have market power. In addition, a trend that follows supply and demand is the Law of Demand; when the price of a good or service increases, the quantity of demand decreases. And when the price of the good or service decreases, the quantity of demand is greater. Methods of depicting the Law of Demand are these demand schedule and demand curve. The demand schedule shows the relationship between the price of a good and the quantity demanded in a table and the demand curve shows the relationship between the price of a good and the quantity demanded in a graph. The demand curve shifts when there is an increase of decrease in quantity of demand. The curve shifts right when the demand increases and shifts left when the demand decreases. Other factors that contribute to shifts are income, price of related goods, tastes, expectations, and the number of buyers.