Chp. 4

Chapter 4 was about Supply and Demand which is pretty fundamental. It's so basic and important you don't have to take an economics class to know about it. Basically the supply available by firms depends on the demand. Each individual that buys a certain object will increase the overall Market demand. The same goes for supply. Each firm that decides to take upon  a business of any sort will contribute to the overall Market Supply. When a factor that is not represented in a graph (income, taste, etc) changes the graph will shift. If it deals with prices and such that are represented in a graph then the market will not shift but simply move along the market/supply curve. Taste is very important when it comes to demand but it is difficult to determine how taste changes/ came to be. The demand of one supply can also determine the demand of another. The two types of relationships would be a substitutional one or a complemental one. So basically Frozen yogurt vs ice cream or Peanut butter and jelly, both of which differentiate by the use of "vs" and "or"....kinda. It can get a little complicated though, such as the cigarettes and marijuana example. I thought theyd be substitutes...but they're complements.