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Copyright Goodheart-Willcox Co., Inc.
Chapter 1 Introduction to Business and Economics
The demand curve shows that consumers are
willing to buy fewer goods at higher prices.
The market price of a product is the point at
which the supply and demand are equal. The
equilibrium is where the supply curve and
demand curve intersect.
The law of supply and demand applies to
a constant environment. A constant environment
means that other factors do not change, which
is rarely the case. For example, the demand
for goods and services can quickly change in
reaction to fluctuations in the economy. When
the economy is strong, many consumers have
more money to spend. They demand more
products to satisfy their wants. If the demand
for a product becomes greater than the available
supply, a shortage develops. In this case,
consumers compete to buy the available supply,
which forces the price up.
When the economy weakens, consumers
typically have less money to spend and they
demand fewer products. If the demand for a
product becomes less than the available supply,
a surplus develops. In this case, sellers compete
to sell the available supply, which forces the
price down.
Demand can also be influenced by changes
in society. For example, many people today are
more concerned about living healthier lifestyles
Real numbers are all whole and fractional or
decimal numbers on a continuous number line that
are not imaginary. Whole numbers are numbers
with no fractional or decimal portion. Decimals
are numbers with digits to the right of the decimal
point. An imaginary number is any number that
results in a negative number when squared. An
imaginary number always includes the notation i,
such as 2i.
To add a positive number, move to the right
on the number line. To subtract a positive number,
move to the left on the number line.
Find the solution to these equations.
1. 5.87 + 4.956 + 2.011 + 4 =
2. 34 + 9 127 + 783 =
3. 73 + 8 12 =
You Do the Math
Numeric Reasoning
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Demand for goods and services can be affected by
changes in society.