Data Response.

1)

    A. Demand : Is the quantity of a good or service consumers are willing and are able to purchase at a given price in a given time period.
    B. Economic Growth:  It is the measure of national income, which is the value of all the goods and services produced in an economy in a given time period, usually one year.

2)
A reason in wich there has been an increment of price on copper is because of China.
Becacuse China has been over the few years having an increase in the economic growth and its income this has caused the effect of excess demand of products in China, specially product such as copper. We can explain better with a demand and supply curve.

 

We can see in the graph, a shift to the right in the demand, thi smeans that the price will rise to reach an equilibrium. We can also see the ammount of excess demand  in the graph.

3)

Because the copper has a high cost, then most of electronic materials that use copper will have high dcost too, thiss means that the production of these products will be more expencive, in this case the product is the washing machine. 

 

In the graph we can see a shift to the left on the supply, this means a decrease in supply, the price is then increased to reach an equilibrium with demand.

4)
In the coming months, what is likely to happen in the copper market is that the excess demand on copper will vanish, this means that copper is to stabilisize and reach equilibrium. The demand will rise because of the Chinese increase of income and the supply will decrease because the rise of price on production cost. This means there are two movements in a graph.



the supply then shifts to the left because its decreasing, and the demand shifts to the right because of the rise in Income. As we can see, there is a new equilibrium point.

Demand.

In economics the demand is very important, as it moves the whole industry of money and products. So what is demand?
In Economics the word demand means a desire, but a desire backed up by enough money to buy a good or service. This means that a demand for a product is the quantity of people who desire and can afford to buy the product. For example the demand of ferrari is the quantity of people who not only desire the car (cuz every one wants to have a ferrari) but the quantity of people who can afford to buy it. Not many people have the money to buy a ferrari, which means that the quantity of demand of ferrari is less than the quantity of demand of a Nissan car.

Demand can be explained much better with the Demand curve.
In the demand curve, the quantity of demand of a product is shown at the X axis, while the price of the product is at the Y axis.

In the graph we can se that in A the price of a can is 80$ and the demand is 300, while B shows 60$ and 500 of demand, this means that the less price, the more demand.
In the demand curve, the straight line we can see, can shift either left or right, depending on the demand. Here comes the "ceteris parabus" and law of demand, which is as price of product falls, the quantity demanded. If the demand rises, the curve will shift to the right, and if demand decreases the curve shifts to the left.
Some factors that affect the Demand are:
-Income
-price and quality of similar products
-size of population
-change of age structure
-change in income distribution
-substitution

With reference to two different determinants of demand, explain why the demand curve for bicycles might increase. 

 There are detterminants of demand that has factors which have cause and effect.
But what factors causes effect on increase of demand in bicycles?
As said above, the factors that affect demand are Income, price and quality of similar products, size of population, change of age structure, change in income distribution and substitution.
 I will explain with reference to the age and population, and price and quality of products.

-The age and its population is a factor. When the population of kids and children between 4-18 rises, the demand of the bicycles will rise too, kids and teenagers use bicycles as their first transport and if its population rises, then this makes the demand of bicycles increase. The more kids there are,the more demand there is hence more bicycles will be needed.

-When the bicycle company reduces its prices for the product, there is a change in demand, as people start to afford the price of the bicycles, when the prices drop, there will be an excess demand as its supply its not ready for such a change, it takes time to reach the equilibrium between supply and demand. The effect of a drop in price must have a cause, for example, in the bicycle company scientist found a new way to produce bicycles faster and the cost of bicycle luxury wheels dropped, this makes the bicycle company be more effective and have an increase of quality, making the consumers buy the product for its quality and its price, hence the demand rises.

A better way to explain is showing a graph.

as you can see in the graphs above, there is a change in demand,  in which the product of bicycles changes its price by decreasing it, then it makes the demand rise, as it is cheaper.

The Free Market and The Planned economics

Which economy fits better to the people?

First to do is to understand what a planned and free market economy is.
What is a planned economy?

The planned economy is knows as the command economics, it is similar to communism, but its NOT. When there is a planned economy, the goverment is the one who handles everything, this means that the goverment dictates the production type and leves, even the prices and wages. Resources and incoming money is owned by the state. The goverment has total control over the allocation of resources.

So what are the pros and cons of planned economy?
Pros: Since the money is divided equally between the people, it means that the gap that separates poverty to rich is going to be smaller, because there is income equality. Also, products and goos will be distributed equally, givin everyone affordability of goods and services.
Because the goverment tell what products and goods need to be sold, the allocation of goods will go towards one product, therefore there is a potential to get things done very quickly.

Cons: There is no competition withing the economy. No matter how hard some one works as a doctor, the doctor will earn the same income, services and goods as someone who works as a janitor in a school.
In the planned economy there is less choices for consumers, since the goverment makes decisions of goods and services.
The quality of the goods produced and consumed are unfavorable.
There is lack of freedom and personal gain, since the goverment takes control of everything. The citizens do not own anything, and cannot advance in their profesional carrer.
Generally, a con about planned economy, is that no one understands it.
Also, there is a lowerd standard of living compared to a free market economy. Take as an example the standard living of Chinese citizens and American citizens.

What is a Free Market Economy?

Mostly known as Capitalism. Here there is no goverment intervention, the resources and goods are privatly owned. Everything is privatly owned. In Capitalism there is individual choises of resources and the goods. The Free Market provides a self-fightig system, in which competition is more.

Pros and Cons?

Pros: People are free to make their own choices, no matter on choice of job, goods, resources and services. This is because the goverment has no intervention compared to Planned Economy.
There is a system to produce efficiently and reduce the ammount of resources wasted. Producers gain more money when there is less producs wasted. Consumers will spend their money in ways that maximise satisfacion and divide the income between goods and services.

Cons: Some people arent guaranteed to have a job, making unemployement rise.Because there is too much competition, some people will not have an income, making them poor and increasing gap of rich and poor.
People are not paid the same ammount as others. The wage and income of a bussiness manager will not be the same as a taxi driver, making some people prosper and others suffer.

So, which economy do you think is best?
In my opinion i go for Free Market Economy.