Economic Icon: Chris Biehler

Economics is the social science that deals with the allocation of scarce resources, working to obtain the greatest satisfaction from societys unlimited expects. some(prenominal) factors that deal with scotchs is the concepts of entreat and supply. While most people whitethorn not really realize how economic takes place in their everyday life, slice it is very obvious that it does. My job of working at a McDonalds is very much related to what I have learns in our economic course. The law of select states that the amount of involveed of a good or military service is inversely related to the price of a good or service.To have a demand for something you must(prenominal) be volition and able to purchase the good or service at the various prices during that time period. This is related to my job in many ways. in that location are five factors that make up the non-price determinants of demand, Income, tastes and preference, the price of related goods, expectations and population . So with the concept of demand if a person wants McDonalds then they must be willing and able to pay for the food and services. The first nonprice determinant being income. If a persons income changes they may not come to McDonalds as much anymore because they can forthwith afford nicer good or services.Making a McDonalds an inferior good. An Inferior good is when there is an inverse relationship between income and demand. other example may be now that your income has cast upd people may come to McDonalds more and barter for a larger quantity of food, making it a normal good. some other determinant would be tastes and preferences, if people get in the mind set and McDonalds may cause obesity may increase, the demand for McDonalds may decrease while the demand for a healthier product may increase. Another example is price of related goods. The two types of related goods are substitutes and compliments.For example if price was to increase at McDonalds then people may go to Bur ger King to satisfy their fast(a) food needs. Compliments would be if the price of burgers increase then the demand for fries may decrease because everyone knows that you do not go to McDonalds and not order french fries. Resulting in the ration customer going to buy other things. Another example is expectations, if people expect a pay bonus then, they may go out and buy things. A final determinant is population, the quantity demanded will increase if there are more people in society that are willing and able to buy McDonalds.Not only is demand related to my life but supply is as well. Supply is the willingness and ability of producers to sell a good or service at various prices during that abandoned time period. The law of supply is the quantity demanded of a certain good or service is positively related to its price. One determinant is relevant resources. Another determinant is a change in technology. If McDonalds had advanced machine that would cook meat faster than food would be able to cook much fast and service would be quicker making more customers come to our store. Another example is change is the use of product.If the price of milkshakes increase, people may want to buy more ice cream resulting in our McDonalds being able to use the mix toward sundaes and cones. Another determinant would be change in expectations. Due to the summer months coming up McDonalds may increase or prepare to order more cases of the strawberry lemonade. A change in a number of producers is another(prenominal) determinant. Meaning that as supply increase or decrease their may be an increase or decrease in producers. Taxes and subsidies are more determinants only if with the weather. If the weather is poor and the McDonalds floods the supply will decrease.Another Thing that I find to relate to my life from what I have learned in our economic sort out is price floor. A price floor is a minimum is the legal minimum price below which a good or service may not be sold. For ex ample minimum wage. As the prices in our economy increase, if there wasnt a price floor then McDonalds may want to offer lower wages, making it harder for a person to live. During our micro economics class there have been many aspects that I can relate to my life. This class is allowing my to expand my horizons and further understand economic concepts and how they apply to my life and the peoples lives around me.