So, I'm not exactly positive about what I'm writing, but I'm going to talk about demand and economics. Before we started this unit I knew about demand and that consumers had to demand something for it to be made, because if people don't demand it then people won't buy it and you won't make a profit. I didn't really know about demand schedules and TRT's but I feel like it could be useful in the future to know so I'm glad I learned it. I don't really have any questions that I feel really need to be answered, I feel like I understand everything I need to understand.
Again, not exactly sure how to show that I understand demand so I'm just going to go for it. Demand occurs when people feel like they need something like candy or clothes. Somethings are necessary to continue functioning at a normal level and this is called Inelastic demand. There are also things that an elastic demand and those are things that are not constantly demanded or can be replaced by a substitute which is often the same product, just a different price and a different brand. There are also ways to test whether or not things are being sold at the right price for profit, such as the Total Revenue Test.
For example, in the student store every class we are required to take inventory. This tells us what is selling and what is making a profit. However with the cookies that are sold at lunch, we are writing down how much of each type of cookie sold to determine what sells the most. Also in the store, last week the new shirts came in and on that single day alone, the store made over $1000, compared to other days without shirts that made around $200. In all, the more people demand the more things are given and the prices must be judged accordingly to how things are selling and what things are wanted.
