Explain how supply and demand is relevant to wages, rent, or food costs in Charles and Ebony’s budget.
Explain how supply and demand is relevant to wages, rent, or food costs in Charles and Ebony’s budget.
USE THIS ONE I HAD TO REVISE IT.
ASSIGNMENT 1 SCENARIO
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Your close friends Charles and Ebony know that you are learning about economics and personal finance, so they have come to you for advice about their family budget. They want to know what you think about how their budget has changed from the previous year.
HOUSING
Charles and Ebony rent an apartment in the neighborhood near where they grew up. This allows them to live close to their families, who help out with child care. However, the cost of living in their area has been becoming more expensive. In January, their landlord notified them that their rent would be increasing when they renewed their lease. The climate in the area is hot in the summer and cold in the winter. To keep their apartment comfortable, they use air conditioning and heat.
FOOD
Food prices have been going up. Charles and Ebony have made changes by cutting back on specialty foods and fast food and buying more generic foods, but they still feel like they need to devote more money in their budget for food until they can figure out other ways to reduce their food costs.
TRANSPORTATION
Increases in the cost of gas have made it more expensive for Charles to commute to work every day in the car they own. To save money on transportation expenses, Charles has joined a carpool. By carpooling three days a week, Charles has been able to save money on transportation expenses and keep their transportation budget from rising despite the increasing cost of gas.
HEALTH CARE
Charles, Ebony, and Marcel are in excellent health, and Charles’ employer provides their health insurance. So far, they’ve been able to keep their health care costs low.
OTHER SPENDING
Charles and Ebony each have a cell phone, and they also have a personal hotspot for Internet access. Ebony needs the Internet access because her classes are online.
SAVINGS AND DEBT
Saving money for emergencies and for the future is very important to them. They always try to set aside money for savings even when money is tight. However, the interest rate on their savings account is very low so they’re considering other options.
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