Tuesday, June 5, 2012

Economics?

I would be willing to bet that about 98% of you feel like this


when you hear the word 'Economics'. Rest assured, I felt like that until one day while I was chugging through my Econ 380 homework and I had a geeky epiphany-econ explains why we do what we do. BABY MAMA. OK, that was only to get your attention and to make sure that you don't click out of here thinking that this is a blog about economics. This is a blog about my life as a college student, my life as a traveler, my post-mission life, my life as a hopeful adventurer. I hope it'll bring some sort of entertainment to your lives and help you to understand why I am the way I am, and what I hope to become.

I just wanted to explain the title "Supply and Demand" before you all write me (and this blog) off as a sorry attempt at being "witty."
Side Note: I've been putting off starting a blog for almost a year because I couldn't think of a title. Just ask Sarah, she's been trying to get me to do one since I got back from Romania. 
Here is a very simple explanation of the concept of supply and demand. Let's think about an item that we all want, Chacos. Ok, if you don't want them...think again. They may or may not be the most useful footwear to grace us since these. So, you're getting ready for a Summer filled with nice hikes and good weather and you want something that can handle all occasions, and still look dang good. Let's think about what will make you buy these babies. Let's take a look at this graph below:


Confused? Don't worry, in about 1.35 minutes it'll make sense. This graph has two sides, one that represents the price of Chacos, and one that represents how many Chacos there are to buy. There are also two lines, D (demand) and S (supply). The demand line shows how many people will buy chacos at any given price. The supply line shows how many pairs of Chacos a store will sell at any given price.

When would a lot of people demand Chacos? When the price is really low, hence why the D line is at the bottom right corner. When would nobody want to buy Chacos? When they cost a whole lot of money.

The opposite goes for stores. They want to have a lot of Chacos when the price is high, so that they can make more money. They don't want to have a lot in stock if they are cheap because they won't make a lot of money selling them. When the two lines cross, that is the price where you will buy a pair of chacos and the store will be willing to sell them to you. Easy enough right?

Basically, supply and demand helps explain why people make certain decisions. If Chacos cost $400 there is no way I would buy them, but if they cost $100 I would be much more willing to do so. And it turns out that at $100 stores are willing to sell them to me also.

So what in the world does this have to do with life? 
We are all willing to do certain things in order to get something out of it. I am in college because I want to learn how I can help the world to be a better place. I am willing to give up a certain amount of time and money in order to receive this education, and it just so happens that Brigham Young University is willing to provide me with these resources for that amount of time and money. Life is about finding that equilibrium, that big black dot in the middle of the graph, and the adventure is all about getting there. That's why I love life, because we have to explore, we have to try new things, we have to open our eyes and search for things that will bring us this happiness. For some it's painting, for others it's playing football, for me....well I'm still finding that out. On this blog I'll be trying to document the things that I explore and do that are bringing me closer to this equilibrium point. Welcome to economics of my life, hopefully you are in for the adventure!

4 comments:

  1. Inauguratorial post. Been a long time coming! I'm so proud:)

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  2. Am I too excited about this? Yes. Also I am super excited that you posted about Chacos. Not that I own any. I just appreciate them.

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  3. CHACOS!! I am all for them...and maybe a second pair too haha.

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  4. Love it! So - tell me how I find the equilibrium point for my chaos. My life is surely not in demand of this...but there is plenty of supply!

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