Date: [2/23/2012]
To: Lead Economist Laura
From: [Tony Randall]
Subject: Final Project Paper

After completing this course in Microeconomics, I have learned quite a few things about this subject. It is my hope that what I have learned can be relayed to others and be beneficial to whoever decides to take this subject. I have learned how our economy works on a small scale and a large scale.

There are many different kinds of economies in our world and each have an important role for running their respective countries. The first is the Centrally planned economy in which the government of that respective country decides how economic resources will be allocated. The second economy is a market economy in which the decisions of households and firms interacting in markets allocate economic resource. The third and final in the mixed economy in which most economic decisions come from buyers and sellers in markets but where the government plays a major role in allocating resources. our economy is slightly a mixed one .(Hubbard,R& O Brian,A, 2009)

Supply and demand is one of the most basic Ideas of economics and it is the core of the market economy. Demand simply means how of a product or service is wanted by a consumer. The quantity demanded is the amount that people are willing to buy at a given cost. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. (Hubbard,R& O Brian,A. 2009)

“The difference between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand” ( Hubbard,R& O Brian,A, 2009). Without the law of supply and demand, we would not have an economy to speak of. So the answer is yes.

Elasticity is a