John Haraden

ECON – 2010 – Carson

Reflection

The laws of supply and demand are ever present in our daily lives. Every product and service
available in the market is ruled by these laws and most of our daily decisions are affected by them
as well. It is vital for economists to study these laws and thoroughly understand their effects on
firms and the economy as a whole. Understanding the laws of supply and demand plays a major
part in effectively allocating the limited resources individuals and firms have. When firms apply
these concepts in their production, they are able to not produce more goods and services than
they are able to sell. It is also important for individuals to understand these concepts, so they are
able to allocate their resources efficiently and gain the greatest utility from what they have.