User:Kubajadak

Nye's Theory: refers to the idea of quantity and its effects on demand. The Quantity Theory of Related Goods, was first presented by Peter Nye in AP Macroeconomics. Macroeconomics is simply a social science, or the overall behavior of a market(whether its the stock market, the meet industry, whatever market). Economics deals with certain variables and principles such as quantity, ratios, demand, and other factors. The art behind economics is the understanding behind production, consumption, and distribution. Long story short, people think that economics is simply made of up two factors, supply and demand. Although these two principles do play a key role in economics, you must first know the four parts discussed in Peters AP Macroeconomics class. Peter Nye, has a different idea on substitutes and complements. Peter Nye has a special analogy saying, that if a study were to come out that the product remains the same while it is improved. Lets say a new piece of evidnece comes out saying how ice-cream actually makes you lose weight. This will result in the product being better for people but still in the end being the same product. Now, look at this vise verse, if there were to be a study saying that ice-cream actually makes you fat, it will automatically, by human instincts cause the ice cream to become less demanded, but still the same product.