econnomics
What I've learned about MicroeconomicsEveryone can have life long benefits from learning about Economics. It is a subject that is entailed into everyday life, decisions such as, what's the most amount of candy bars and drinks I can buy if I only have five dollars? So with a better understanding of economics we will be able to figure out what is the best combination of candy bars and drinks. I will be discussing chapters one through six, which are titled: "What is Economics?", "Scarcity and Choice: The Economic Problem", "Supply and Demand: An Initial Look", "Consumer Choice: Individual and Market Demand", "Demand and Elasticity", and "Production, Inputs, and Costs: Building blocks for Supply Analysis."Chapter one, "What is Economics?", it starts by giving eight ideas that will be talked about through out the book. One of the Idea talks about opportunity costs, which is the value of the second best option which is given up to make the first possible. An example of the opportunity cost for buying a new cell phone would be not being able to go out as much because you spent a lot of money on the phone. The chapter then goes on to talk about how economics has a lot to do with assumptions and theories based off of Econ
Chapter two, "Scarcity and Choice: The Economic Problem", how economist make decisions on what to have and do since resources are short. The demand curve can also shift to the right or left, this is due to four factors: 1) consumer incomes, 2) population, 3) consumer preferences, and 4) prices and availability of related goods. goes down, even if the total utility is high for that product. Where as the demand for normal good would go up if your income increased. Increasing of returns to scale is when a company doubles its input and they more then double their output. The next main point is quantity supplied which is the number of a certain product that the producers want to sell over a period of time. The law of demand say that lower prices makes the amount that people are willing to buy higher, so the market demand curves have negative slopes. The law of diminishing marginal utility says that the more one buys a certain product, then the marginal utility of that product decreases. They can concentrate on the idea that they are good at producing, then trade some of it for an item they need from another country. Whereas a decreasing return to scales is when they double the input and get less the double the output. This chapter also takes about the basics of graphs, which many already know. Then a rise is price of a substitute item will cause a shift to the right in the demand curve for the other item. So the average physical product is the TPP divided by the quantity of input. In market systems producers and consumers make up and determine how what the price should be and how much should be produced.
Common topics in this essay:
Demand Initial,
Market Demand,
Supply Analysis,
Demand Elasticity,
Choice Economic,
Chapter Economics,
,
demand curve,
supply demand,
Costs Building,
rise price,
supply curve,
market demand,
physical product,
consumer willing,
marginal utility,
opportunity cost,
Production Inputs,
Inputs Costs,
supply demand initial,
inputs costs,
item cause shift,
choice individual market,
product marginal utility,
scarcity choice economic,
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