| The Law that Rules is the article written
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| | constructed that shows the quantity
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| by Steven Rosen and posted in "kansascity
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| | demanded at each given price. It can be
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| dot com" on March 27, 2005. Steven Rosen
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| | represented on a graph as a line or curve
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| once a month offers basic economic
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| | by plotting the quantity demanded at each
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| concepts that can be easily explained to
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| | price. It can also be described
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| kids, so they can form their vision of
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| | mathematically by a demand equation. The
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| how the real-adult world works. This time
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| | main determinants of the quantity one is
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| Rosen's ninth installment (that is the
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| | willing to purchase will typically be the
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| way he calls his articles; altogether
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| | price of the good, one's level of income,
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| there will be twelve installments)
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| | personal tastes, the price of substitute
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| explained the basic rule of economics:
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| | goods, and the price of complementary
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| the rule of supply and demand. He
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| | goods.
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| explains the law of supply and demand
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| | To make this concept simpler to children
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| using dolls, stuffed animals, trading
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| | the author suggests asking children
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| cards, plastic wristbands and other
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| | questions about the things that they
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| things that kids like to collect. Kids'
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| | collect. For instance, ask why some
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| collectibles are the things that they
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| | particular toy is special and more
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| will be most willing to spend their money
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| | valuable than another one. The answer
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| on.
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| | would probably be that particular items
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| The topic of supply and demand was chosen
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| | are limited or have unique design. Then
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| because it is a necessarily starting
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| | Rosen proposes to go further and question
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| point for understanding how the prices
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| | kids what their actions would be if their
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| are formed. As examples that will be
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| | friends or neighbors had an identical
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| easily comprehendible by kids the author
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| | toy. Would they desire to exchange it?
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| uses prices for pizza, toys, and iPods.
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| | For how much would they price it? If, on
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| Kids would buy all those things with
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| | the other hand, only one friend had it,
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| their money, so it is a real life example
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| | would it increase the demand and what
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| that is closer to them than for example
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| | would the price be in that case? Rosen
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| the formation of prices for oil.
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| | also tells to construct open-ended
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| Rosen explains supply as the amount of a
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| | questions for kids, this way kids receive
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| product or service that a business is
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| | an opportunity to present their vision of
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| willing to offer for sale; and demand as
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| | the situation which significantly speeds
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| how much purchasers would buy and what
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| | up their understanding of the market. By
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| they'd pay. Supply deals with production
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| | using the examples that Rosen suggests,
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| and demand with desire and popularity.
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| | kids automatically get the idea of the
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| Rosen is pretty close in his
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| | price elasticity of demand and price
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| explanations, however, if we want to be
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| | elasticity of supply.
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| precise in definitions then we will have
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| | The author also gives other suggestions
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| supply as the quantity that producers are
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| | of explaining the rule of demand and
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| willing to sell at a given price. For
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| | supply. One of the cases is the formation
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| instance, the soft drink manufacturer may
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| | of prices for fuel. Actually, supply and
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| be willing to produce 1 million packages
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| | demand is only the part components that
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| of some soft drink if the price is $1 and
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| | set the price. But the discussion can be
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| significantly more if the market price is
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| | focused on driving habits, cutting off
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| $2. The core determinants of the amount
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| | the not necessary driving, drive a more
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| of packages of a soft drink that a
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| | fuel-efficient vehicle.
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| company is willing to produce will
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| | The number of topics that can be used for
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| generally be the market price of the
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| | discussion is countless; what the author
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| good. Demand is the quantity that
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| | thinks really important is to keep a
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| consumers are willing and able to buy at
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| | child interested and at the same time
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| a given price over a period of time. For
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| | entertained by the conversation which
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| an illustration, a consumer may be
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| | will help the process of understanding.
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| willing to purchase 30 packages of a soft
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| | The kids' awareness of such basic
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| drink in the next year if the price is $1
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| | economic issues plays an essential role
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| per bag, and may be willing to purchase
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| | in how they will manage their funds in
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| only 10 bags if the price is $2 per
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| | the future.
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| package. A demand schedule can be
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