Microeconomics, Macroeconomics, And Macroeconomics

One non-price item that has definitely impacted my demand is the recent increase in minimum wage. Since I have seen a pay increase I am now able to buy things I would not have been able to afford before. Looking at this long term it is likely that the overall price of goods will increase and the market will eventually return to equilibrium. Another factor that has caused me to change my purchasing habits is my change in tastes. Recently I have developed a taste for organic foods so I have decided to stop buying fast food all together as well as processed foods from the supermarket. So in terms of my individual demand curve for fast foods and processed foods it will cause a leftward shift. This will also cause a rightward shift of the organic foods demand curve. Another instance involves changes in expectations. This factor has the ability to simultaneously affect supply and demand. If I expect that prices for goods are going to increase at a later date my demand will increase now. If suppliers foresee prices rising in the future they will supply less now and supply more when the prices are higher. Overall there are many different factors that affect how individuals

When there is a change of one of the factors of supply- like changes in the prices of production inputs like labour or capital; a change in production technology and its associated productivity change; or the amount of competition in a specific product market- there is a corresponding change in the supply curve. For example, if worker productivity improves due to some human capital or technology investment, then the costs of production decrease. This exerts a positive effect on the supply curve shifting it right, where the new market equilibrium is at a higher quantity and a lower price, holding everything else constant. There can also be a negative shift that moves the supply curve to the left, with the resulting market clearing price being higher and quantity lower, ceteris

2.) Which curve(s) change and based on the lists in the text of what causes demand and supply to shift what are the causes of theses shifts? D1 changed moving leftward indicating a decrease in demand due to a technological change: a technological setback causes a decrease. This causes price to go down as well as the demand is lower.

Supply is the total amount of a specific good that is available to the consumers. The supply of lobsters depends on the ocean temperature and since the ocean temperature is increasing, lobsters may once again come in a couple more weeks earlier than usual. In 2012, this caused the quantity of lobster to increase significantly, thus the supply curve shifted to the right. The shift caused the equilibrium price to decrease and the quantity to increase. On the other hand, if the ocean temperature is too low, then the lobster production rate is lowered. The supply curve will then shift to the left and cause the equilibrium price to increase and the quantity to decrease. The lobsterman cannot control the supply of lobsters since the production depends on the temperature. Another economic topic that came to my mind is the demand of a product. Demand is a consumer’s willingness to pay a price for a specific good. The demand curve would shift to the right if the price of the lobsters decreases due to mass production and vice

1. If an economy produces final output worth $5 trillion, then the amount of gross

Changes in the equilibrium price and quantity depend on exactly how the curves shift (Berkeley University, n.d.).

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

The consumers and producers behave differently. To explain their behavior better economists introduced the concepts of supply and demand. In short words, the law of demand states that with price increase quantity demanded of a good or services decreases, and the law of supply states that quantity of a good produced increase if the market price of that good increases. Of course, it is just general rule and does not explain all varieties of factors impacting the supply and

Different market decisions determine how an economy is run. There are several different factors that account for how markets make their decisions, which determines how they function. The theory of markets mostly depends on supply and demand. However, it is key to note that there is a difference in demand/supply and quantity demanded/supplied. A demand is how much the buyer plans to purchase at various markets prices and the quantity demanded is what the buyer actually purchases at a particular price. Supply is the producer or the seller’s plan of the amount the seller will make available at different market prices and the quantity supplied is the actual amount that the seller makes available at a particular market price. It is important to

The Above picture clearly illustrate that where the Demand and supply curves intersect, that is called equilibrium point of demand and supply where consumer demand is equal to supply from firms or production sector and Q shows quantity and P shows price.

Let 's say there 's a sudden increase in the demand and price for umbrellas in an unexpected rainy season; suppliers may simply accommodate demand by using their production equipment more intensively. If, however, there is a climate change, and the population will need umbrellas year-round, the change in demand and price will be expected to be long term; suppliers will have to change their equipment and production

2. Microeconomics – the branch of economics, which deals with the individual decisions of units of the economy – firms and households, and how their choice determine relative prices of goods and factors or production.

Macroeconomics is "the field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels" (Investopedia, 2011). In other words, macroeconomics examines economic trends in the economy as a whole, in contrast to microeconomics, which looks at the decisions made by firms and individuals (Investopedia, 2011). Most business majors have a good understanding of microeconomics because supply and demand help explain the individual supply chains that professionals will confront in the workplace. However, one simply cannot understand microeconomics without understanding macroeconomics because larger economic forces help impact part and supply pricing that lead to fluctuations in costs, which may lead to supply issues on the micro level. In fact, "the factors that are studied by macro and micro will often influence each other, such as the current level of unemployment in the economy as a whole will affect the supply of workers which an oil company can hire from, for example" (Investopedia, 2011).

Macroeconomics concentrates on the issues that affect the economy in its entirety. It particularly focuses on economic factors such as inflation, unemployment and economic growth. Macroeconomics examines the elements that influence the behaviour of national and international economies, taking into account the total amount of goods and services produced by all businesses and the government.

Is planned obsolescence a “natural” phenomenon or simply an ambiguous method of supporting the economy? It is both. Why? How? To clearly elucidate this intriguing topic-to some- this presentation will be divided into six sections-the foundation of our economy, the basis of planned obsolescence, the system in all our products are manufactures and marketed, how this technique is “pulled-off” (in an epithetical fashion) by corporations and how primordial edicts of macroeconomics and microeconomics should be conformed to. Firstly, what is economics? In the words of highly-acclaimed American economists, Steven D. Levitt & Stephen J. Dubner-“Economics is, at root, the study of incentives, how people get what they want or need, especially when other people want of need the same thing”. Macroeconomics is a division of economics subsidizing on the structure and abnascentia of economics, the behavior of consumers and the scrutiny of interactions (decisions) between corporations and individual clients as a part of a greater economy; as a whole. Microeconomics –as its Greek prefix, mikro meaning small- is the opposite of macroeconomics entirely; it is founded on the study of the behavior of individuals and small organizations in a systematic view of a collapsed economy with limited resources (input and output in a circular manner). To get a cosmopolitan view on our economy this speech will be greatly led on the “laws” of macroeconomics. Economy is the state of a country or region in