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Defining Economic

In: Business and Management

Submitted By anniechan
Words 1129
Pages 5
Defining Economic

Economic is the social science that examines how people, government, businesses, and nation make choice on dealing with limited resources to satisfy their wants and needs. Economic is broken down into many forms. First there is macroeconomic, which focus on the behaviors of the combined economy. Next there is microeconomics, which is the study on separate buyers. The central to solving economic divided into three parts. First, is what products need to be produce, and how much to produce. Second, is how the products will be produce. Last, who are the products produce for (Colander, D. C. 2008). Microeconomic is the study of the market performance of individual buyers and firms in an effort to understand the decision-making process of businesses and family. Microeconomic concentrate on the relationship between individual buyers and sellers. It also examined the influences that will affect the choice made by users and vendors. Microeconomic focus on the supply and demand and how each firms make the choice of how much of something they must produce, and how much the goods will be charge. The buyers’ demand of the goods help sellers determines the price of the goods. The term of supply refer to how much the market can offer to the buyers. The quantity supplied indicates to the volume of certain product creators agree to supply base on the certain price. With the law of supply, it proves the quantities that will be sold for a certain price. In the law of supply often the higher the price of the products, the higher the quantity will be supply. The theory of producing high quantity of product with high price will increase revenue for seller. The term of demand identify how much buyers wants or needs a certain products and services. The quantity of demand is defined as the amount of a certain goods individuals are eager to purchase...

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