Adding happiness — at a price

CIn this part . . . onsumers want low prices, and business owners want high prices. These fundamental truths are embodied in demand and supply. In this part, I break down the concepts of demand and supply. I start by examining demand — the decision-making process that you and I use when purchasing goods — and I explain how business owners can influence that process. I then turn to production and supply. Decision-making principles to reduce production costs through the right input combination and innovation are developed. Understanding these production decisions leads to an examination of the relationship between production costs and the quantity of output produced.