Changes

==Introduction==

==Introduction==

We’ve had our first introduction to economics and are ready explore the topic in greater detail.  Remember that this course is about the purchase and sale of goods and services in free enterprise.  By “free enterprise,” I mean business transactions with little or no government interference.

We’ve had our first introduction to economics and are ready explore the topic in greater detail.  Remember that this course is about the purchase and sale of goods and services in free enterprise.  By “free enterprise,” I mean business transactions that are "free of" interference by someone other than the buyer and seller, such as government.  Free enterprise has little or no government interference in the setting of prices and selling of the goods or services.

The first obvious question about the purchase and sale of goods is this: what determines the price and quantity of goods sold?

The first obvious question about the purchase and sale of goods is this: what determines the price and quantity of goods sold?

The price that a stock trades on the exchange is where the “supply” by sellers equals the “demand” by buyers.  When a seller of stock asks too high a price, then there are no buyers and the stock does not trade.  When a buyer of stock offers too little a price, then there are no sellers and the stock does not trade.  The transaction only occurs when SUPPLY EQUALS DEMAND.

The price that a stock trades on the exchange is where the “supply” by sellers equals the “demand” by buyers.  When a seller of stock asks too high a price, then there are no buyers and the stock does not trade.  When a buyer of stock offers too little a price, then there are no sellers and the stock does not trade.  The transaction only occurs when SUPPLY EQUALS DEMAND.

Today we will discuss this important principle of economics and many of the surrounding issues.

Today we will discuss this important principle of economics and many of the surrounding issues.

==Supply and Demand==

==Supply and Demand==