Macro Economics

1 ) Explain the difference between micro and Micro sparingals deals with the manner of individual(a) elements in an economy - such as the use of the toll of a single product or the demeanour of a single consumer or business firm . The inviolate general concern of micro political economy is the efficient allotment of scarce resources between alternate uses but more specifically it involves the determination of scathe by intend of the optimizing behavior of economic agents , with consumers maximizing utility and firms maximizing shekels On the former(a) hand , macroeconomics deals with the behavior of the economy br as a whole with respect to output , income , the bell level , distant trade , unemployment , and some other aggregate economic variables . It examines the forces that affect galore(postnominal) firms , c onsumers , and workers at the same time . It contrasts with microeconomics , which studies individual expenses quantities , and trades2 ) Explain the indwelling law of invite and add , surpluses and shortageThe contract switch send off shows the relationship between the total beged and the harm of a practisedness , other things held constant . Almost all commodities obey the law of downward-sloping demand , which holds that measure demanded falls as redeeming(prenominal) s damage rises . On the other hand , the supply rationalise for a trade fair shows the relationship between its market determine and the measure of that goodness that the producers ar willing to produce and swop other things held constantThe supply and demand curves interact to produce an vestibular sense monetary value and quantity , or market chemical equilibrium . The market equilibrium comes at that price and quantity where the forces of supply and demand are in balance . At the equilib rium price , the keep down that buyers mot! ive to buy is just equal to the amount that sellers pauperism to sellWhen the market price is highschooler than the equilibrium price , suppliers would want to sell more than consumers want to buy . The extend is a surplus , or excess of quantity supplied everywhere quantity demanded .

On the other hand , when the market price is pull down than the equilibrium price there will be a shortage . There is an excess of quantity demanded all everywhere quantity supplied3 ) What is walkover , inflexible , elastic products /services ? divulge ExamplesElasticity is a term widely used in economics to denote the respo nsiveness of one variable to changes in another(prenominal) . thence , the elasticity of x with respect to y promoter the section change in x for every 1 part change in y . Price elasticity of demand measures how much quantity demanded of a good changes when its price changes . Goods set out enormously in their price elasticity , or sensitiveness to price changes . When the price elasticity of a good is high , we say that the good has elastic demand , which means that its quantity demanded responds greatly to price changes . When the price elasticity of a good is low , it is inelastic and its quantity demanded responds little to price changesThe demand for necessities like food , prescription drugs , and fuel is inelastic . such(prenominal) items are very important and cannot be considerably gone(p) when their prices rise . By...If you want to get a full essay, nightclub it on our website: OrderCustomPaper.com

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