Economics is a management of household. It is a scientific study on how individuals in the society generally make choices.

A study of the problem using available economic

resources as efficiently as possible as to attain the maximum fullfillment of society's unlimited demand for goods and services.

I've learned that we have unlimited wants and needs but we only have limited resources that leads to scarcity. If there is no scarcity, there is no need for economics.

The Important economic Concepts first is our wealth, our stock of net assets . Anything that has functional value is a wealth and easily to converted into cash.

Second is our Consumption, when we are buying or using a product or services, we obtained satisfaction. It is a direct utilization or usage of available goods and services by the

buyer.

We also have a Production, it is the output formation by firms. it is the finish product that combined of land, labor, and capital in order to produce goods.

Fourth is the Exchange, process of trading goods or services for money or buying. It is what we called, importing and exporting. And last is Distribution, it is the process of

allocating scarce resources to be utilized by household, business sector and the rest of the word.

Branches of Economics.

1. Microeconomics means small, deals with individual decisions of the units of the economy. The main goal is to understand behavior and interaction of consumers and

producers.

2. Macroeconomics means large, the main goal is to understand behavior of economy as a whole.
 NARRATIVE REPORT
IN
ECONOMICS
PREPARED BY: JANINE D. GOMEZ MARKETING 3B
In this subject, I learned many important things. Like how to supply and demand related, the different markets and how to compute the various cost in production. When we are

satisfied in our goods that we buy it is called Demand. It is our eagerness and desire to own or purchase a good and services.

In Law of demand, when the prices of goods rise, quantity demanded falls, similarly, when prices fall, quantity demanded rise. In our income, when my allowance increase, I will

buy more food for snacks. IN this scenario shows that how I reacts to increase in income given a normal good. The price of related goods, is a decrease in the price of goods as

the law of demand claims will result to increase in quantity demanded of such good as the same time. Example of this is when the mobile or cellular phones were introduced in the

market bringing about lower prices on services for calls and messages, the demand for landline services decreased.

I've also learned that sellers option to sell more when prices run high than at a lower price as higher prices lead to a higher profit called Supply. It is simply a good and service

offered for sale by the firms.

Our technology changes in production process may shift the supply curve leftward or rightward. With our technology the production process becomes easier and faster. It has a big

role in our daily lives and also in our society.

As demand curve and supply are drawn together, it produces another concept known as Equilibrium.

If many consumers buy a specific goods or services , it can occurs in Shortage in supply. The sellers may respond by raising the price as buyers will still want to buy the goods at a

higher price.

There are also situations wherein the sellers are not able to sell all the goods they offer at the price that they wanted, this is what we called Surplus. It is known as oversupply. The

sellers may decreased the price so that they can sell it in the market.
In our government, they are setting minimum prices for certain commodities and services that it believes are being sold in an unfair market with too low of price and thus their

producers deserve some assitance. It is called Price Floors. In maximum prices, it is called Price Ceilings.

Price controls also market intervention by the government on prices to make them affordable.

Elasticity is measured in its absolute valuee. Whether it is positive or negative, the signs will be dropped and the numerical value will be considered. In elasticity, Demand can

be elastic, inelastic and unit elastic. We have also different kinds of goods.

We are the consumer, who demands for product and services. We can choose , desire, and purchase a product we want that can satisfied our needs and wants. We have the

power or the command to dictate what is to be produced in the market, it is called Consumer Sovereignty. We have two types of goods, the tangible economic products that we

can touch and see and the intangible which is the service. In our daily lives, we are buying different kinds of goods. Like the luxury goods, without these goods, we can live

because we are buying these for our own pleasure, comfort, and well being. For example is cellphone, cars etc. The opposite of this gooods are the essential or necessity

goods, bec. without these we cannot survive . these are our daily needs, like food, shelter and clothing.

Everyone would want to have all his/her desires yet there will always be bounds on up to what extent one will be able to acquire. One of which is budget constraint. We only

have limit to afford a specific product or services we want to purchase. We only need to consider our income before spending too much.

We have a factors that affect consumption in relation of this. These are the income, supply of goods, price of goods and savigs. Because when we are saving our money, our

available budget to be used in consumption will be decreased.