Summary of what I learned this week

The Demand and the Offer comply with two laws that are the laws of supply and
demand. The amount of demand and the quantity of offer is based on the price. If the
price of a good increases, then the demand for the good decreases, the price is a barrier
that prevents buyers from buying more than they want and have the ability to buy. If the
price of the good decreases then the demand increases, this happens because the
purchasing power of the buyer increases with low prices. If the price of a good
increases, then the supply of the good increases, this happens because suppliers are
interested in greater profits, and a good price gives them a good profit, besides the
marginal cost in the production of an additional unit increases ; This means that it is
harder for the producer to manufacture more goods, therefore the sale price must be
higher. The demand curve is negative and the supply curve is positive; these curves can
move to the right or to the left, this depends on factors independent of the price. For the
demand these factors are: Consumer preferences, number of buyers, income of buyers,
price of related goods (substitutes, complementary) and consumer expectations. In the
case of supply, the determining factors of the offer are: Price of resources, Technology,
taxes and subsidies, prices of other goods, expectations of the producer and number of
Sellers. When at the same price the quantity demanded and the quantity offered is the
same, then at this price it is called: equilibrium price; and this amount is called:
equilibrium amount. Sometimes the government wants to regulate the price of goods in
the market, and sets maximum prices for a good (ceiling price), this in order to benefit
the consumer, it is possible that the equilibrium price is high for many people and That
is why the government decides to establish a ceiling price that can not be exceeded. This
situation is not favorable because when the price is lower than the equilibrium price,
then the demand increases and the supply decreases, this generates scarcity; there are
also people who can pay the equilibrium price and there are producers who sell the
goods at a price higher than that established by the government, and this they do on the
black market. Sometimes the government wants to benefit the producers and establishes
a floor price; This means that the good can not be sold for a lower price; This situation
is not good because this generates excess of goods, increases the supply due to a high
price, but decreases the demand for the same reason, sometimes the government has to
buy this surplus of goods.