The Economy: The History And Development Of The Economy

The economy plays a vital role in our society, but many people do not pay much attention to it. People do not want to take the time to learn about the economy, but I do. The definition of economy is "the sum of all transactions that take place within a certain area, during a certain time" (Morgan Spurlock, We the Economy). The economy began around 40,000 years ago and through the years the economy has changed constantly. The first economy created was the free market system. Since money was not invented for quite a while, in this system you would trade, this continuous exchange of money, goods or services was referred to as the market cycle. However, trading with only a few people was not enough. Thus, the marketplace was invented. People with special skills like hunting, spear making, clothes making, etc. were able to trades their good with a vast amount of people. As those with specialized skills grew and aimed to perfect their skills,

If an item is in demand, the item is priced low to sell quickly. However, as the item gains more popularity and demand the owners can jack up the price of the time because it is the new 'must have ' item. However, one store is bound to run out of supplies sooner or later because they do not have a infinite number of one item. So, when a consumer goes to buy a product, let 's say a cane, and it is not in store one the demand increases without the supply. So consumer a goes into store two where the cane is available, but the price for the cane goes up because the supply is limited. So instead of paying $10 in store one, you pay $15 in store two for the same product. However, when both stores run out of canes with the demand so high, they order more. With the new shipment in both store one and two are able to charge not $10, not $15, but $16+ because the demand is so high. Knowing the law of economy is good, but what is more important is how in the 21st century we measure the