Microeconomics

While microeconomics is the study of individuals and their business decisions, macroeconomics looks at larger decisions, I.E, Country and Government decisions. Microeconomics is normally the study of individualsand business decisions, macroeconomics looks at high up nation and government decisions . Macro economics and micro economics, and the wide spectrum of of the number of underlying concepts, has been the subject of a great deal of writings. The field of study is quite larget; and here is a short summary of what both of them cover: Microeconomics Microeconomics is the study of decisions that companies of all kinds, and humans make, regarding the distribution of resources and the prices of different types of goods and services.…

Relationship of The Nudge theory to Microeconomics The nature of decisions that are made in the business environment vary because of many reasons. Human actions or behaviors play a primary function in influencing the business sector. Microeconomics deals with the impact of human beings, through their actions and practices in shaping business industry. Their actions form part of behavioral economics. The behavioral economics sector is mainly influenced or determined by the concepts of the nudge…

The Importance of the Concept of Elasticity in Microeconomics The concept of elasticity is intended to measure the degree of responsiveness of a buyer or seller to a change in a key determinant, in particular price. 1 In other words, elasticity means how sensitive are consumers for a price change. I would like to talk about elasticity from the perspective of the total revenue. As we already know from the law of demand, when the price goes up, the quantity goes down. However, thanks for this…

There has always been a relationship between the factors of economics and the world of business. Economics is a crucial study to know at first hand when the interest of running a business sparks, but many have asked, what is the relationship between the two and why is it so important? The importance of economics in the business world is a necessity because without knowing the odds of making decisions, the stakes are extremely high and after spending my time studying the factors of…

Moving from Microeconomic to Macroeconomic Microeconomic analysis: Microeconomic is based on the supply and demand principles. As the change in price of a good or services, it will change in quantity supplied (movement along a supply curve) (text book ). When change in income, preferences or prices of other goods or services, it will change supply (shift of a curve). (text book ) The following example illustrates the simple idea on the affect of behavior for the individual firms/household in…

Microeconomics came before macroeconomics. The founder of microeconomics is Adam Smith whereas the founder of macroeconomics is Keynes. Adam Smith believed that there was no need for government intervention to fix the market or to adjust it to equilibrium. He believed that the free market can adjust itself alone. This is what microeconomics discusses: how demand and supply work to reach equilibrium. In addition, microeconomics looks at the individual, household and firm level. When drawing…

Microeconomic variables can be used to predict how the economy will perform, both in the short and long run. Today, businesses have to make decisions in a complex environment. They depend on microeconomic variables when making decisions, which are drawn from data to make critical choices which play a critical role in the success or failure of the business. Therefore, the currency and reliability of information used by businesses when making these decisions affect the success or fail of…

What is microeconomics? The meaning is the social science that studies the implication of individual human action specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics show how and why different goods it values in other terms its more complete advance and settled science that macroeconomics. When I read the article, “The Fatal Flaws in Trump’s Frankenstein Economic Plans,” that talk about the economy and the new era that the United…

Businesses and people make decisions when regarding where to allocate their resources and the price of goods & services, this is microeconomics. Governments create regulations and taxes; this must also be taken into consideration. Supply and demand is the main focus of microeconomics, to determine the current price levels in the economy. Microeconomics takes a look at an individual company and figures out how to maximise the production and capacity of the company enabling it to lower its…

With every cloud comes a silver lining. I always heard the saying growing up and never seemed to understand its true meaning. While taking a microeconomics class we dug deep into this topic. That’s when I was able to wrap my head around its true definition. I feel as if the economy crash a couple years was bound to happen. Our morals were out the window for a few dollars. Everyone from the buyers to the sellers were jeopardizing significant values to make sells complete. I feel as if we could…