1.) According to Miller (2014) “there is generally a direct relationship between price and
quantity supplied; as the price rises, the quantity supplied rises”(p. 58). How this concept
affects me and my family is that we are victims of the market place. My family and
myself cannot rely on prices remaining constant so we may end up having to pay
more at times because of the laws of supply and which way that pendulum may be
swinging at any given time. In short, because there has been more of a demand for
something and therefore more is being supplied, I may even have to do without it because
I choose not to buy it due to a price increase.
2.) According to ...view middle of the document...
How things like this could affect me and my family is
that a price increase in a product not even used by us could create an interest in a similar
product that is used by us which in turn creates a greater demand which would then raise
the price of the product used by us; a chain reaction so to speak. It would be like the price
of milk increasing so people opt for soy milk substitutions which increases the demand
for soy milk substitutions which in turn increases the price.
4.) According to Miller (2014) “for most goods, an increase in income will lead to an
increase in demand” (p. 55). I live in Seattle, Washington, we have the highest minimum
wages in the United States. Recently the minimum wage was increased again to that of
fifteen dollars an hour. Based on the information that was in our text, more people will be
spending more money on goods which in turn will create more of a demand which in turn
will raise the prices perhaps even of food. How this affects me and my family is that
due to an increase in other peoples wages we will be paying higher prices for things
although we ourselves have not had any increase in wage; we lose in the end.
5.) According to Miller (2014) “fashions depend to a large extent on people’s tastes and
preferences” (p. 56). I want to make it very clear that I am glad that people are eating
healthier and more attention is being paid to personal health all around. But, my family
and I have always paid attention to our eating habits and consume a lot of produce and
with us, it is not a trend. With eating trends (fashions) it drives the demand for lettuce,
tomatoes and various fruits up and you can really see the affect at the super market when
lettuce is almost three dollars a head. You also see it at restaurants when you order a
EFFECTS OF ECONOMICS 4
Caesar salad and it is almost nineteen dollars. So, my family and I are paying more for
something because it is chic as opposed to a general shift in consumption.
6.) According to Miller (2014) “the price system is one form of rationing” (p. 80). Although
I complain and do not like to see the raising of prices, it is a way of rationing which helps
me and my family knowing that resources from the environment are not being depleted.
Let’s say that raising prices is a way of rationing and some of the items that are being
rationed through this type of venue are made with plastic, there will be less people using
those products which in turn will affect the demand which will affect the supply and less
plastic will be used on that specific product for a period of time. This form of rationing
ensures that our resources are brought into consideration which helps the environment
which in turn helps the people (Miller, 2014).
7.) According to Miller (2014) “often, owners...