This week.

This week we have been looking at supply.

Supply is not very complicated... When prices go up, the more the producers want to "supply" us with their goods, because they will be making more money.

There is a very simple formula we learned to calculate wether or not a recent change is price was beneficial, it is (Price x Quantity = Total Revenue).

Essentially this will tell you if you are making more money or not.

Make sure to visit again next week for more exiting weserville news.

This week.

This week we have gone over elastic and inelastic goods.

Goods that have the same demand even when the price goes up are inelastic.

When the demand for the good changes dramatically when the price changes, the good is then called elastic.

We demonstrated this by using a formula to she if the good was elastic or inelsatic.

See you next week.