Page 2 - Economics and Personal Finance

◗ Billions of consumers in the world demand

goods and services every day. Maybe you have
waited in line at a store to buy a particular item that many
people wanted. Your wants and needs have a lot to do
with deciding what is produced. The things you and other
consumers demand influence what goods and services
are made.

In this chapter you will learn what the law of demand is.
You will read about the substitution effect and the income
effect and how they can change your spending patterns.
You will find out how a change in the demand for one
good can affect demand for a related good. You will also
learn how the expectations of consumers, population
growth, and advertising all affect the demand for goods
and services.

Reading Strategy: Text Structure
Understanding how text is organized helps
readers decide which information is most
important. Before you begin reading this
chapter, look at how it is organized.
• Look at the title, headings, boldfaced words, charts,
graphs, and photographs.
• Look at the questions for clues about which information
the chapter covers.
• Ask yourself: Does the text show a problem and
solution, description, or sequence? Does it compare and
contrast or show cause and effect?

• Summarize the text by thinking about its structure.

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