Basic Concepts for Economic Reasoning

1782 Words Aug 23rd, 2010 8 Pages
Running head: THE BASIC CONCEPTS FOR ECONOMIC REASONING

The Basic Concepts for Economic Reasoning
International Economics

Will Bury`s Gose Global Part I Will Bury has invented a technology that gives the option of reading text materials digitally or

listening to it with synthetic voice which sound realistic (Will burry`s goes global, UOP).

In this paper I will explain economic concepts founded in Will Bur’s scenario, which will Bury`s have to take some important business decisions.
The economic concepts in Bury’s Price Elasticity Scenario are:

A. Supply and demand

Supply and demand is one of the and basic concepts of the global economics and is

Considered a backbone of market economy. Demand is defined
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This concept will show Will Bury how the price of substitute goods offered by competitors will be Based on how much his product sales.
The Basic Concept for economic reasoning part II
Burry’s Issues Identified Will Bury is an a enterprising inventor, who has stepped into the business with some prosperous
Outcomes. Before taking any business decision, we must help him out in understanding major issues he is Going to face and how he can apply the international economic concepts to solve those issues.
After going to scenario, the Burry’s first issue to identify is US economy and how it works’ .The world Economic systems are classified according to whether they are ‘’ market systems’’ or “command Systems”. We operate within the market system called capitalism. This type of economy does not accept Any government intervention, like price fixing, quotas and industry substitutions. The consumer has need And wants and product is considered a “want” in market economy.

Now a days, the basic problem in the market system is scarcity. The consumers and producers make Decisions in buying and selling on basis of scarce resources, such as labor, land and capital. One Important

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