Ten princiles of ecanomic

Principle 9: Prices rise when the government prints too much money.
I understand from the principle that when the demand for money increases the government produces more money and as a result the market price rises and then inflation occurs. Inflation slow down the development of the economy.
Principle 10: Society faces a short-run trade-off between inflation and unemployment.
Inflation has a very negative impact on the country, economic growth slows down, but on the one hand, as production increases in the country, the demand for money increases and the government issues more money ,then the price rises , enterprises try to increase the labor force in order to make more profit, and unemployment decreases .Inflation on the other hand , is a common process in countries transitioning to a market economy.

Conclusion
In the ten principles of this chapter we learned the basic principles of economics namely people and demand invisible hand, government, economy and inflation.
Chapter 4
This chapter introduces the theory of supply and demand. It shows how supply and demand determine prices, in a market economy and how prices, in turn, allocate the economy’s scarce resources.


D1

$2

$1

Initial equilibrium

New equilibrium


Price of mask



During the pandemic

Pandemic increase demand of mask



Supply







D2





Before the pandemic



Quantity of mask cones

3



10


Case 1. As we can see, before the pandemic, the price of mask was low ($1), but the demand for masks remained low. Because at that time people felt less need for a mask.

Case 2. During the pandemic, masks become the a main protection weapon of human and the demand for a masks increased. People were forced to wear masks on a regular basis despite increase price of masks.

An event that raises quantity demanded at any given price shifts the demand curve to the right. The equilibrium quantity both rise. the pandemic caused buyers demand more mask. The demand curve shifts from D1to D1, which causes the equilibrium quantity to rise from $1 to $3 and equilibrium quantity to rise from 3 to 10 cones.

Chapter 7

In chapter one, we understood that the strength of demand and supply determines the price of goods and services, the amount of production in a market economy and now we learn how to properly allocate resources and its impact on economic well-being.