Thomas Shogren, Chapter 1, Question #2

The issues brought up in this chapter affect my life in many aspects. They affect me both directly and indirectly. The idea that everyone acts according to their own self interest is the very backbone of many aspects of my life. I am not going to make decisions that are going to harm me because that is not going to help me in the present or in the future. The issue of supply and demand affects me everyday because the use of my money is driven by the price of the good, which is affected by supply and demand, and the demand of my want of the good. The self interest of others also affects me indirectly. An example in the reading was the act of Coca Cola during the controversy of the Berlin Wall. They gave out free Coke through the wall which causes a lose in income in the short run, but in the long run caused a large increase in income as more people in the former East Germany bought more Coke after the Berlin Wall fell.