The laws of supply and demand are both important to your decision making. These laws determine how much something costs, whether you can afford it, and how much is available on the market. Sometimes prices are not what we want them to be. You might choose to purchase a different product or service. This is known as buying a substitute good. Substitute goods take the place of what you most wanted to buy but somewhat satisfy the same purpose.

Please watch the following video to review supply and demand:

What is Supply and Demand?

Video link: https://resources.careered.com/LCMSFileSharePreview/Resources/MP4AudioFiles/LawOfSupplyAndDemand.mp4?_gl=1*1y3yow1*_ga*MTY0MzA3MTUyMC4xNzA3MTE4OTAx*_ga_PF30M1FV81*MTcwNzExODkwNC4xLjEuMTcwNzExOTAxOC4wLjAuMA..

Discuss the following:

• How has the law of demand impacted your life?
  • For example, have prices increased or decreased, making the quantity you purchase more or less?
  • When prices increase, did you choose to purchase a substitute good?
• How has the law of supply impacted your life?
  • For example, has there ever been a limited amount of something you wanted to buy?
  • When the amount was limited, how did the price change?
  • Did the price change influence your buying decision?