Chapter 4: The Market Forces of Supply and Demand

This chapter really focused on the idea of supply and demand; or the behavior of people as they interact with each other in competitive markets. Inside a competitive market, price and quantity are determined by all buyers and sellers. This relates to the famous "Invisible hand" we read about in previous chapters. I think the book could have done a better job clarifying what a perfectly competitive market is, because I'm still a bit fuzzy on this topic.
The first section talked about demand. Correlational data for demand is organized through a demand schedule and demand curve (they both represent the same variables, so what are the benefits of using each? What are the disadvantages? Also, why is it linear?). The factors that can shift the demand curve are income, prices of related goods, tastes, expectations, and number of buyers.
One thing I found interesting was the idea of complements and substitutes, especially in reference to the prevention of smoking. There was a tidbit that said by raising the cost of cigarettes, thus causing demand and production to lower, people would have a higher chance of turning to tobacco or marijuana (which are supplements of each other). This just sparked my interest because no one really thinks about the downside/consequences of trying to get people to stop smoking.
The other section was, not surprising, about supply. Correlational data is organized through a supply schedule and supply curve. Meanwhile, factors that could cause a shift in market curve are input prices, technology, expectations, and number of sellers. I found this a bit dull since it was like Déjà Vu but with small tweaks in vocabulary.