Demand Headlines.

1. Complementary- "Cake pops: all the rage! Frosting and sprinkles are being sold like hot cakes!"

2. Substitute- Frozen yogurt deemed healthier than ice cream, ice cream sales are dropping below zero.

3. Elastic- Candy prices are at all time lows, kids with cavities are going to dentists who are making 100 Grand.

4. Inelastic- Electricity prices spark an outrage, more than triple from last month! Homeowners begrudgingly use appliances with a less than a bright attitude.

In these modern times, electricity is a much needed resource. Everything in a home runs on electricity. Start with a typical day: your alarm clock has batteries/power plug; you turn on the lights to see; the coffee pot is connected to a wall outlet; the TV is turned on to watch the morning news; your workplace has to be lit and heated, any technology used has a battery that needs to be charged; come home and microwave food, use the stove; wind down with some television; and don't forget the various lamps and lights that are turned on and off throughout the day.

As you can see, we couldn't function as a society without electricity. Many of us don't want to stray from our comfortable lifestyles, so we're willing to pay more. Over our course of time it has been observed that the demand for electricity has stayed pretty constant compared to the fluctuation in price. 

Demand and Utility.

Three goods/services that I will buy this week will be:

1. Food because it will give me energy and it is delicious.

2. I have to pay my dad $15 because last month I went over the allotted data usage on my cell phone and I always use it.

3. A drink from Starbucks, Dutch Brothers, or Jamba Juice because it's a treat during a hard week of school and it will give me energy/happiness. 

Markets.

Living in a market economy, I have had to deal with the highs and lows of it all. I like having access to a multitude of products, but it's worrisome that we don't have a universal system for basic needs like health care and public education. 

With supply and demand, producers are able to predict the trends that consumers will want. This leads to high satisfaction and a happier community. Since there is a lot of individual freedom, people can express themselves how they want to. They're able to direct their money in the places where they feel it is most needed.

On the flip side though, not having services available to everyone is difficult and leads to distress. Having a high competitive system leads to many private companies and a lot more money being needed by each individual. The economy is run by greed and the need for profit which isn't the best quality to instill in younger generations. It seems like the only way to be successful is if you're able to make a lot of money.

Opportunity Cost.

Recently, a decision I've had to make is whether or not to read a book that is due for English or to go to bed at an earlier time. The book is due in less than a week, but there's also a flu/cold/virus going around school that requires my immune system to be working, which involves getting rest. 

In the end I decided to read my book because I knew that I needed to do well on it and I would have to spend time reading it later. I also figured that it would benefit me later in the week because I normally procrastinate on projects like these. Although I was able to get through a few chapters, in the morning I was exhausted and irritated. If I had gone to sleep I would have been more well rested and in a better mood. In addition, being more awake during the day would help me focus better in school.  

Scarcity.

In my life, gasoline is scarce because I have to use it everyday. The prices for crude oil are rising which causes the price at the pump to also rise. It's a fossil fuel so I know that one day it will all be gone. I have to be conscience of my gas use because of the cost and the impact it makes on the environment.