Principles of Economics: Supply and Demand - Essay Example

Meaning, both supply and demand are qualified by the willingness and ability to sell and buy them respectively. This constitutes a very significant topic in this book.

Instead, as Paul Krugman and Robin Wells examine, the trader can only determine the right quantity of the commodity to take to the market has looked at the price of that commodity, prices of similar commodities, future expectations of changes in prices, costs of production and government policies(Mankiw, N.G., 2006).

On the other hand, I learned that the amount of commodities demanded by consumers depends on the level of their income, quantity supplied, future expectations in changes in production, and government policies (Mankiw, N.G., 2006). Therefore, as an aspiring entrepreneur, I will make good use of these lessons to help me supply the right amount of commodities to the market. Otherwise, if I fail to consider such market prevailing conditions, I would have a dead stock or run at a loss, an experience I do not want to have.