Chp. 5

Chapter 5 is getting a little more in depth with the patterns involved in economics. It's something I've heard about but unlike supply and demand it's something I've never took the time to understand. Last I took the time to understand an "elasticity" concept was with physics. Elasticity in this case is how willing people are to continue buying/selling a certain thing if the price changes. An inelastic demand would be something like food, a necessity. If the price rises you can't just stop eating. An elastic demand is something of a luxury or a narrower/more specific thing that has substitutes, like ice cream. Ice cream is food but is narrow, has many substitutes, and is more of a luxury food not a necessary food. Elasticity and Inelasticity also applies to supply. Except that in the long run price change is elastic whereas in the short run it is more inelastic because it's hard to get an entire firm to change direction unlike a single person that can do whatever they want with there money. The concept was not too bad when it came to understanding it but what I'm not excited about are the calculations. I had to read the midpoint formula thingy majig twice to try and absorb it at least 50%. Also, I'll probably forget once in a while that a linear supply curve is not completely elastic/inelastic. I'll try not to though.