Microenterprise also refers to micro business, which starts with a smaller amount of capital plus employs a small number of people. Generally, microenterprise serves as a trademark of developing the country as well as its economy. Many people found a shortage of jobs in the formal sector; howe...
4.Whatfactorsdefineamarket?5.Whatismeantbytheterm“demand”?Whatisthelawofdemand?6.Whatismeantbytheterm“supply”?Whatisthelawofsupply?7.Beabletodefinethetermsshortage(orexcessdemand),surplus(orexcesssupply),andequilibrium.8.Ifthepriceisnotattheequilibriumprice,explainwhatforceswouldmovethepricetowardsthe...
Economics is the study of the economy. It is concerned with various economic activities like production, distribution, and consumption of all goods and services. It is divided into two broad categories that are microeconomics and macroeconomics....
What is the basic problem with economics? At what point is scarcity not a problem in economics? Why is scarcity the fundamental economic problem that all societies face? Then, explain what we study in microeconomics and macroeconomics. What are the effects of scarcity in economics? ...
adjustments relating to goodwill reserves and revaluation of assets and liabilities, etc. have been made; and then the partner whose capital falls short, will bring in the necessary amount to cover the shortage and the partner who has a surplus, will withdraw the excess amount of capital. ...
As demonstrated in the strawberry example, a key factor in price elasticity is the availability of substitutes. If strawberry prices surge, people will buy less expensive produce, like apples, bananas, or oranges - or even different varieties of berries. There is no shortage of strawberry substitu...
What is a supply curve? What is a demand curve? Achieving equilibrium Supply and demand examples If a product is being sold but there’s no one around to buy it, does it really exist? Supply and demand is the give and take of microeconomics. The market would not survive if companies ...
If price falls below the market clearing price, buyers will buy up all of the available goods, causing a shortage in the market. This shortage causes prices to rise, until they reach the equilibrium price. Likewise, if prices rise above the market clearing price, suppliers will have a surplu...
MRS is tied to themarginal rate of transformation (MRT). Whereas MRS focuses on the consumer demand side, MRT focuses on the manufacturing production side. Often, the two concepts are intertwined and drive the other. For example, consider a global shortage of flour. A manufacturer may be more...
In this scenario, the person is indicating a clear priority for the use of the water. This is called ordinal time preference. It also helps to explain whydemand curvesare downward sloping in microeconomic models since each additional unit of a product or service is put toward a less valuable ...