Amazon is likely losing $50 per Kindle Fire

Amazon, who displayed a Kindle Fire, which is a material similar to the Apple's Ipad is actually one of the competitors of the Ipad. They say that it is more competitive than they anticipated. However, there are some negatives that effect the decreased income of the Kindle Fires, but it is actually a slowly increasing their income for this material. when they made they informed that it has positive sides than the Apple. Alternatively, Amazon focuses on a product with superior content delivery; the company is leveraging its wide range of content assets available for sale in conjunction with its Cloud Services product for world class, mobile, digital delivery. The CEO of the company Amazon states that they will probably have the chance of winning the numbers of products apple sells.
From this topic I learned the basic concept of the law of demand and supply, but through this topic I think I noticed the competitive law of supply of demand. Explaining the number of quantities they sell depends on the number of  quantities of the other companies incomes. I don't know if this is one of the laws that is existing, but I feel like it will be one of the laws in the existing economy.
As I said above this topic relates to the law of demand meaning the more people buy the product the more the prices will go up following by the competing companies. This theory also states the CETERIS PARIBUS, which means all  other things be equal.

Laws in Economy

Supply and Demand is an economic model of a price determination in a market. 
There are four basic laws of supply and demand:
If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.


The law of supply is used everywhere in the world. For example, if the income of the apples are huge, the producing supply of the apple will increase also. It gives benefit to the society in life cycle. 


However, if people suddenly stops buying apples, then the income will decrease and also the producing number of apples will also decrease. This is the law of Demand. It is a law that states that consumers buy more of a good when its price decreases and a less when its price increases ( also known as Ceteris Paribus).

Two more important theories are left, which are Veblen, andGIffen goods. Veblen goods are goods that are perceived to be exclusive as long as prices remain high or increase. For example, high-status items such as luxury cars, expensive shoes or pricey watches remain appealing to certain cosumers as long as prices remain high or increase.

Giffen goods is an extreme type of inferior good. An example of Giffen good can be bread being still the cheapest food which they can get and will take, they consume more, and not less or it.

Demand, Supply and the Price of Oil

World & OIL

Due to the global economic downturn, and OPEC's decision of maintaining output at current levels increased the price of the oil. According to the article, it says that by the end of the year, a barrel of oil will cost about 75~80 dollars. However, it also notes that, "The price rise is a function of optimism that better things are coming in the future." Meaning Despite the price of oils increasing, there will be better materials to replace oils in the future. There are some cases where the price of oil has been blocked due to the economic crisis. Also the price of the oil may go down because of the shortage of oil storage. Therefore, when there is no place to store oils, people won't buy oils, and the price of the oil may decrease. However, oil investors have been searching for new oil wells, or develop old oil wells. By the time recession, which was blocking the oil price to increase, depletes the oil prices will once again rise. Nevertheless, the good news is the oil prices will be kept at an average, even though the price elaborate.  

ECONOMY

An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the the manufacturing, trade, distribution, and consumption of goods and services of that area. An economy may also be described as a spatially limited and social network where goods and services are exchanged according to demand and supply between participants by barter or a medium of exchange with a credit or debit value accepted within the network.


The reason why I am studying Economy is because I chose this subject this subject will give a helping hand to my future life and job, to communicate with people and the money.