This example easily shows the complicated system of the free market people

This example easily shows the complicated system of

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and a lot in between. This example easily shows the complicated system of the free market; people desire something, and other people are willing to supply them with it. Everybody gets what they want, and this process continues. D. My most memorable take away was the fact that there is so much going on within the free market system that I take for granted. Beyond just the people who make or buy a pencil, there are the people who affect the producers and consumers. A waitress may serve food to a lumberjack which gives him the energy to cut down the trees which provide just the wood for a pencil. That alone was mind-blowing. It is also crazy how I willingly and unknowingly participate in transactions with people from all over the world, even though it is indirect. Question 3.2 A. Market Equilibrium (E) is the point where the supply curve and the demand curve cross at a single point. Market Equilibrium Price (Pe) is shown when the price that consumers are willing to pay for a good or service is equivalent to the price that suppliers are willing to
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2 sell their good or service at. Market Equilibrium Quantity (Qe) is where the amount of a good or service that a consumer wants to purchase is the same as the amount of that good or service that a supplier wants to sell. Quantity Demanded = Quantity Supplied. B. (i). The demand curve for a good or service slopes downward and to the right because price and quantity are inversely related. If price goes down, demand goes up. If prices goes up, demand goes down. (ii). The supply curve for a good or service slopes upward and to the right because price and quantity are positively related. If price is high, quantity will be
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