Models

In economics we use a lot models, but why?, I will later answer this question but first of all I would like to point out what are:

In economics, a model is a theoretical construct that represents economic processes by a set of variables and a set of logical and/or quantitative relationships between them.

We use models in economics to represet in a simple way the complex economics world, makin assumptions.

• Simplification of and abstractation from observed data
• It explains an economic process
• Used to examine an economic issue
• Developing a new economic theory
• Deals with problems or historical data in the economy
  

The principle used is cakked Ceteris-Paribus which is the principle of isolating the variables (not taking other variables in count, just the one we are interested in).

We also use the production possibility curve, that obviously shows the possibility of production.

Then in the graph, the line shows the maximum efficience of resources. When the price changes it is called movement, but if any other thing changes in the curve it is called shift.

In the model we have several elements, but the one we studied included:

· The supply curve

· The demand curve

· The point of equilibrium

· The quantity equilibrium

· The price equilibrium

· The shortage (demand in greater than supply)

· The surplus (supply is more than what is demanded and the price falls)

Publicity in magazines, good or bad?

I was with my friends and they were watching a fashion magazine. It is normal in these types of magazines that you have publicity about many types of beauty products, especially perfumes and cosmetics. Then at the middle of the magazine you have super skinny photosphed models with a themed photo shoot.

Then my friend, a boy, said "Oh, I must stop watching it only makes me feel bad" (it was an image of a male actor). And then I started thinking about that comment, he feels bad because he doesn´t look like him but he is intelligent enough to not make anything risky to change himself but I can´t say the same about other girls.

There are many girls that struggle with self-image and they even buy the product that the model is selling just to try to be a little bit more like the model. But if you think of this in the economic point of view, this is very good.

Magazines get money from publicity in their pages and then girls want to be like the models and buy their products, and if they fell very motivated they go to the gym, so they buy a membership, then they buy weight loss products and when they are skinnier they buy new clothes so it’s all a market that is connected and from this point of view people feeling like my friend is very good.

But in the health point of view is bad because many persons are affected fiscally and mentally and in extreme cases you can even die. But everything has it bad and good things, it all depends on how you see them.