Differences Between Micro Economics And Macroeconomics

Microeconomics analyzes economic decisions on the micro or small level. This includes how a household or consumer will spend their money. One of the crucial aspects of microeconomics is that a business owner needs to have the basic understanding of demand. Demand seems to be the most basic and yet a necessity for small business to be familiar with. The basic concept of demand is that if a consumer sees the price of something rising, they will look for substitutes. Quality demanded is an important aspect of understanding demand as a whole. The quantity demanded on a market depends on many factors. Some of which quantity demanded plays a role in is the price of a good, the price of competitive goods, consumer income, consumer's preferences, and the length of time period. Having knowledge about quantity demanded allows one to one to really understand the relationship between a price and the

Microeconomics and macroeconomics concepts aide in the understanding on how they affect the shifts of supply and demand affect equilibrium price and quantity. Microeconomics focuses on supply and demand (Colander, 2010). A company would look at ways to increase production that could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This would allow the company the ability to pass price savings to consumers. Macroeconomics is used as the economy changes such as with inflation (Colander, 2010). Inflation would cause a company to have increase cost of materials in producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand due to the economy affects on equilibrium price.

Macroeconomic principles come into play when the whole market or more outside factors are involved. Examples of this in the video game industry, which I work in, would be when the rating system for games are under scrutiny, or when a new console is put on the market as competition. These outside factors affect not only the company I work for, but every other company in the industry, from the hardware manufacturers such as Microsoft and Sony, but also the game studios such as Activision, EA and Rockstar Games. Microeconomic principles are caused by and effect only my company in particular, such

Microeconomics deals with the individual parts in the economy and how they relate to each other. Macroeconomics deals with the totals of these parts in our economy

Anderson, K. (2013). The Difference Between Macro and Microeconomics | Mint.com. Retrieved October 13, 2013, from https://www.mint.com/the-difference-between-macro-and-microeconomics/

(e) Explain how a microeconomic view of international trade differs from a macroeconomic view of international trade.

Microeconomics is basically the study of supply and demand in the marketplace (Wikipedia, 2010). Being a horizontal construction company, XYZ needs to consider its competition, the demand for its services and the amount of those services that they can supply utilizing their current capacity and resources. My

Firstly, Macro perspectives focus on the large scale aspects of society such as social stability and social change whereas Micro perspectives focus on the small scale level interaction between individuals such as a conversation. Micro perspectives talk about the day-to-day processes between individuals which human beings require. Human beings need people around them who they can relate to or form relationships and bond with which is a normal function of being a human, that is, to interact with others. On the other hand, Macro perspective deals with maintaining social order or structure among people. In addition, it focuses more on public concerns more than just the concerns of individuals. For instance, macro perspectives deals with issues of the world or society such as war, poverty, third world nations whereas micro perspectives analyses issues pertaining to the individuals such as the role of women, the nature of the family and factors or issues that cause people to migrate. It also, deals with the norms and values of a society which are symbols that shape individual in a society and their behaviours rather than people shaping the

2. Microeconomics – the branch of economics, which deals with the individual decisions of units of the economy – firms and households, and how their choice determine relative prices of goods and factors or production.

Microeconomics involves supply and demand in an individual market, individual consumer behavior, and externalities arising from production and consumption; while, macroeconomics involves monetary/fiscal policy, reason for inflation and unemployment, and international trade/ globalization.

The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.

The micro-macro dilemma relates to a variety of circumstances and situations and is essential for numerous decisions daily that people make. This is particularly true for many of the business decisions that organizations make in concerns to marketing.

According to the website Product2Market “micro marketing is a strategy used to target a small segment of consumers with specific needs for products in the market. In micro marketing, all advertising efforts are strongly focused on a small group of highly targeted consumers” (Mello, 2014). Micro marketing is used in businesses to study their customers’ characteristics. By doing this businesses learn how to match their products or services to their customers resulting in a likelihood they will return. The website Wise Geek provides multiple scenarios involving micro and macro marketing. For example, micro marketing can be found in the real estate industry. A realtor who develops a reputation for working with properties within a certain price range can better understand the needs and wants of potential buyers who can afford homes within that price range (Tatum and Harris, 2016). Coming from my personal experience

I think that what we learned on market economics is the correct way of thinking about human interaction and the functioning of markets. Microeconomics offered an interesting, and potentially more useful, perspective on the market because it essentially told us how our individual decisions affect the market.

Microeconomics looks at how individual players in the economy, such as households and firms, interact. It focuses on the impact that their economic choices have on the allocation of scarce resources to meet unlimited demand. These interactions match what one party wants or demands in economic term and what the other gives in exchange (supply). Each time someone buys a chocolate bar from a newsagent or undertakes the morning paper round, there’s an interaction between supply and demand (ESRC).