'Discussion Questions Week 1 Economics 365\r'

'Discussion Questions calendar week One Economics 365 TEAM C- calendar week ONE DISCUSSION QUESTIONS 1. What is economics? What parting does economics correspond in your own(prenominal) and organizational decisivenesss? Provide an cause of the hold of soundlys and services of economics in decision making. (Ana K Gonzalez) * According to â€Å"What Is Economics? A translation Of Economics” (2012): * Economics is the study of the doing and consumption of nigh(a)s and the transfer of wealth to contract and obtain those goods. Economics explains how people interact within markets to get what they indispensability or accomplish certain goals.Since economics is a driving force of human interaction, per development it often reveals why people and governments deport in particular styles. There atomic number 18 two main types of economics: macroeconomics and microeconomics. Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders. Macroeconomics, on the other hand, takes a frequently broader cerebration by analyzing the economic activity of an ideal country or the international securities industry (Para. 2 & 3). Economics play an all-important(prenominal) image in either aspects of life and sometimes people weary’t realize that they are using economics day by day.With the use of economics people faecal matter agnise how to spend time and money. Unemployment, technological progress, invade rates and budget deficits are important issues presented in our daily personal and headmaster bells. As students, economics can jockstrap us to acquire more intimacy about what kind of difficulties furrow in our region presents, how to solve it, and the deviance procedures to win to succeed as a business holder. 2. What is the difference between a fecal matter on and a shifting of the deal deviate?What is the make on the counterweight impairme nt and measuring stick that results from an increase in take in, tack on, and two? Provide examples for each instance. What is the role of supply and demand in decision making? Provide a real-world example. (Sonia Elias) The difference between a movement along and a shift of the demand curve in the movement along is caused by a sort in the footing of goods or services performed and a shift of the demand curve is caused because a change in any non- outlay determining on the demand and it can change to both side the right or the left.The re second in the equilibrium price and meter that result from the increase in demand is the price goes up because of the demand of the increase is more and also the measuring stick has its effect because with more demand it requires more quantity on the harvest-tide. A good example is the petroleum now its price is difference up because of the demand it is suffer. The role of the supply and demand takes the role of decide how much quantity will require to add the costumers with their demands on a certain return; it makes the decision of require more quantity of products to supply the costumers. . What is the definition of price gingersnap of demand? What is the relationship between price shot of demand and total tax income? How does price snatch of demand hazard a firm’s price decisions? How does the availability of substitutes affect the price grab of demand? Provide an example. (Chuck Crain) By definition, price elasticity simply means the way demand responds to price changes. The relationship between price elasticity and total revenue can be a really successful one or a total nightmare based on whether or non the product has good elasticity.As long as the product is something the usual public either needs or is very high on their want list, because the product has good elasticity and the profits will continue to increase, frankincense making total revenue much greater. However, if the product i s something society can live without, then the product has ill elasticity and total revenue will go down. When a firm decides to make or sell a product, many considerations go into their long term plans, such as will this product stand the sample of time and will it be lucrative even in tough fiscal cycles.As long as the product has good price elasticity and the competition is low, then prices can be adjusted to flirt the current market price or to increase revenues. However, if the product has a bad elasticity, then the business will vex to decide on whether or not to raise prices, that this decision could cost the company money now and in the future because the customers chose not to pay a higher price. When people want a similar product without the high price, they turn to substitutes.This can include any generic brands of products that provide close to the same endure for the customer, without the higher price of their original brand. Substitutes greatly affect the elasti city of price, because people can choose to buy another product at a lower price, and essentially get the same results from the product. An example would be if a person loves to drink Coke, but can’t afford the price they charge.The person would turn to a meretricious brand such as surface-to-air missile’s Cola and receive basically the same benefit, without spending the extra money. * acknowledgement Principles of Macroeconomics. (2009). Retrieved from http://ocw. mit. edu/courses/economics/14-02-principles-of-macroeconomics-fall- 2009/ What is Economics? A comment of Economics. (2012). Retrieved from http://www. whatiseconomics. org/ Why is economics considered social experience?. (2012). Retrieved from http://wiki. answers. com/Q/Why_is_economics_considered_social_science\r\n'