Week 8 HW

Over the course of the past week, we learned about the determinants of demand (Tastes and preferences, Related goods, Income of consumers, Buyers, Expectations of future availability/prices). We learned about the price elasticity of demand and how that affects the demand curve -- inelastic goods (goods we buy no matter what, like a phone) and elastic goods (goods where the amount we buy greatly depends on the price, like an airhead). We learned about supply (the willingness and ability to produce a specific good at all possible prices) through an example of flip flops and the law of supply (as prices increase, quantity supplied increases. As prices decrease, quantity supplied decreases). We learned about the determinants of supply (Tech, Expectations, Number of producers, Other goods by company, Recourse costs, Gov intervention). Finally, on Friday, we learned about resumes, how to fill one out, and how to make it look and sound better than all other resumes out there.

In today's world, I would argue that computers are an inelastic good only because if the price of a computer drops from $600 to $350, people are still only likely to buy one.

I think we should not increase minimum wage to $15 per hour only because that means that jobs are less likely to hire people, meaning less jobs available, which increases the unemployment rate.