good day my name is elijah dizon from bsbm 1-2
today im going to be discussing my poster about the importance of basic microeconomics
my poster is about the supply and demand, that is in scope of basic microeconomics The law of supply and demand is the theory that prices are determined by the relationship between supply and demand. If the supply of a good or service outstrips the demand for it, prices will fall. If demand exceeds supply, prices will rise
the law of supply and demand is one of the most basic principles in the economics.
In simplest terms the law of supply and demand states that when an item is scarce but many people want it , the price of that item will rise .
Conversely, if there is a larger supply of an item than the consumer demand, then the price will fall. supply and demand rise and fall until they acheive balance.
for example a shoe company releases a desirable athletic shoe and sets the retail price at 3000 pesos while demand for the new shoe might be initially high most consumers are not willing to spend that much for an athletic shoes so sales will quickly drop after the inital rush, with declining sales but plently of shoes to sale , the manufacturer will reduce the price until the demand rises again, when the demand for an item balances with the supply of that product the market is said to be at equilibrium, because of supply and demand can also extend beyond the buying and selling of goods to describe behaviors across the economy.
for example when unemployment is high, employers can offer lower salaries, because the demand for employment is higher than the supply of available jobs, when the situation reverses, employers have to offer higher salaries to attract employees.