ECONOMICS

Economics

Economics

Economics, social science that analyzes the use and allocation of available resources among competing uses. Economics of a choice. This choice determines, for example, that the household will consume what the company will produce, and how people will spend their time at work, education and leisure. It is a social science that seeks to analyze and describe the production, distribution and consumption of material goods. In the 19 st century economy has become a hobby of gentlemen's leisure and the vocation of the few scientists, economists wrote about economic policy, but is rarely consulted by legislators before decisions were made. Today, hardly the Government, international agencies, or large commercial banks, which do not have their own staff economists. Many of the world's economists devote their time to teaching economics in colleges and universities around the world, but most are working in various research and advisory capacities, both for themselves (in economics consulting firms), in industry or in government. Others work in accounting, commerce, marketing and business management, although they have been trained as an economist, their professional expertise is in other areas. Indeed, it can be considered "the age of economists, and the demand for their services as an insatiable. Delivery in response to this requirement, and only in the United States nearly 400 higher education institutions to provide about 900 new Ph.D. 'S economy each year. (Lippman 2001)

Microeconomics

Microeconomics is the study of economic behavior of individual consumers, businesses and industries and the distribution of the total production and income among them. He believes individuals as suppliers of labor and capital, and ultimately consumers of the final product, and it analyzes firms as suppliers of products, and as consumers of labor and capital. Microeconomics attempt to analyze the market or another type, which establishes a mechanism of relative prices between goods and services and allocates society's resources among their many alternative uses.

Law of Supply

The law of supply microeconomic law states that all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases, and vice versa. In other words, if demand held constant, the increase in supply leads to lower prices, while the reduction leads to higher prices. (Blaug 2007)

Law of Demand

The law of demand microeconomic law that states that all other factors being equal, as the price of a good or service increases, consumer demand for the product or service will decrease, and vice versa. In other words, if the supply is held constant, an increase in demand leads to an increase in market value, while the decrease in demand leads to lower market prices. (Blaug 2007)

The Factors That Lead To A Change In Supply And A Change In Demand

On the demand side, prices of a substitute or complimentary good can cause demand to change. For instance, if the cost of chicken goes up, people may shift toward turkey (as a crude example). Also, in general, people's preferences which can be influenced by marketing and surroundings will influence demand...