Pick one of the following resources to highlight your point in your discussion post. Oil, Gas, Farming (Crop or Animal Production), and/or Logging are just some items to look at, if you know any others you would like to discuss, please do not hesitate to use them.
Use the video or any other information that can help you with your response
1) Discuss the effects of changes in supply and/or demand on the relative scarcity, price, and quantity of particular products.
2) Explain how prices reflect the relative scarcity of goods and services and perform the allocative function in a market economy.
There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services
ReplyDelete1. Depending on the relative scarcity of something like farming of crops, if there comes to be a bigger supply of specific crops then the price of the goods decreases and the quantity becomes increasing. However, if there is more demand then that means the supply is becoming lower which means the price of the goods of crops begin to rise as they are more scarce to come by.
ReplyDelete2. Prices reflect the relative scarcity of goods and services in something like crops because, as the prices increase this means that the relative scarcity is increasing, however if prices on crops decrease that means that the relative scarcity is decreasing since there is a bigger supply of those crops and they are easier to come by in that moment. The prices also perform the allocative function in a market economy by basically giving businesses ideas on how to maximize their value on producers and such.