Enigma – a puzzling problem or mystery Why do the keypad buttons on drive up cash machines have Braille dots? Why do stores that are open 24 hours a day have locks on the doors? Why is milk sold in rectangular containers while soda is sold in round ones? Why are DVDs sold in larger packages than CDs when the disc is the same size? Why does Apple sell its black laptops for $150 more than the identically configured white ones? Why is it legal to drive while eating a cheeseburger or drinking coffee but illegal while talking on a cellphone? Why do most stores place men's fashion on the lower floors and women's fashions on the higher floors? Why do economy airline seats have different prices?

Tools of the Economists Use 3 main tools to make best possible decision Scientific Method – involves posing a question, researching the question, developing a hypothesis, conducting studies and collecting information, analyzing the information, and then evaluating the hypothesis Graphs – show the relationship between two given sets of data It is a simplification and does not represent all the variables Economic Models – a simplified representation of reality that allows economists to focus on the effects of one change at a time Can take the form of an equations, computer program or diagram Useful for explaining and predicting how the economy works Example of economic model a. supply and demand (invisible hand)

Example of Graphs