Chapter 6 blog

The chapter describes how the government can intervene in the market. However, it says multiple times the government shouldn't.
There are price floors to place minimum prices on goods.
There are also price ceilings to place maximums on goods.
These can lead to both surpluses and shortages.
Taxes puts a wedge in between what buyers pay and what sellers receive.
Taxes split the burden between the buyers and sellers, however the inelastic part of the trade takes the most burden.

Article due 9/26

It is odd how the view of crisis attacks are kind of like saying it is just governments trying to assert power or instill fear on its citizens. Crisis attacks are found in social narrative, not small things. They are often very big and have an affect on many people. This often becomes things that are so called common knowledge when it reality some of the these things didn't truly happen. Most people are trying to go along with the status quo but that is essentially following a facade version of yourself. The "emergency policies" are more or less just secret ways to grow their wealth. Lies the people in power tell are things they try to say they are trying to protect you for your own good. It is the underlying principle of why every speech apparently has some sense no matter how false or ideotic the idea sounds.

Chapter 5

Elasticity makes sense because that represents the fluidity of the market.
The price elasticity of demand is a little confusing but I understand what makes goods inelastic or elastic.
What does it mean for a good to have close substitutes?
It makes perfect sense that a good like water's demand wouldn't change if the price went up making water inelastic.
Why is it more likely for goods to be more elastic over time?
The midpoint method is slightly confusing.
The number 1 is key in determining elasticity.
More than is elastic.
Less than is inelastic.
Equal meams quantity moves at same amount proportionately as price.
Perfectly inelastic is vertical
Perfectly elastic is horizontal
Demand curve is essentially the slope of the graph.
Total revenue is equal to: (price of good)x(quantity sold)
Inelastic: increase in price leads to increase in revenue
Elastic: increase in price leads to decrease in revenue
Three Rules to Remember:
-Inelastic demand: price and revenue move same direction
-Elastic demand: price and revenue move in opposite directions
-Unit Elastic demand: revenue remains constant when price changes
Normal goods have positive income elasticity.
Necessities have smaller income elasticity.
Luxuries have higher income elasticity.

Chapter 4 Blog

I understand that a market is filled with buyers and sellers.
I believe that competitive markets are everywhere and there will always be a competitive market.
I don't understand how a Perfectly Competitive market is possible.
Would Monopoly be similar to an absolute advantage?
I'm not understanding fully the demand graph.
Would a consumer be considered a third party effect?
Would substitutes and compliments be related?
Can you explain the Supply Curve?
I understand pretty much all the rest, especially the Law of Supply and Demand.