Microeconomics, Macroeconomics, And Macroeconomics

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Abstract Economics is made up of two smaller categories microeconomics, and macroeconomics. Microeconomics is more of a smaller scale such as an industry while macroeconomics is on a more national level. It is important to study economics even if you are not a business owner. For example, understanding economics and the market, you could better determine when to buy a house or when to start up a business. In a YouTube video titled “AP Econ Music Video Microeconomics SPHA”, a group of teenagers worked on a music video summarizing major concepts of economics. In that video, there are a lot of key factors such as supply, demand, monopolies, elasticity, and costs that are beneficial to both producers and consumers.

Intro to
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“A shift in a demand or supply curve occurs when a good 's quantity demanded or supplied changes even though price remains the same” (Heakal, 2015), moving the line left or right. There are many different determinates that can effect a shift. If there is a shift in the demand curve, then it
Intro to Economics 4 may be caused by “preferences, new information, fear, hope governmental interference” (O 'sullivan, Shefferin, & Perez, 2014). Factors that could cause a supply shift are “war, natural disasters, governmental interferences, and shortages of inputs” (O 'sullivan, Shefferin, & Perez, 2014). Back in August of 2005 hurricane Katrina caused one hundred billion dollars in damage. Understanding shifts in supply and demand is important to know because you must know what may cause a change in the demand and supply. However, sometimes the equilibrium is not at the point where the supply and demand curves intersect. When this happens two things may happen, a market shortage, or a market surplus. A market surplus is an excess in supply, in other words the “quantity supplied exceeds the quantity demanded” (O 'sullivan, Shefferin, & Perez, 2014). In contrast, a market shortage may also occur. This is the exact opposite of a market surplus where there is an excess in demand. This can be important to understand because these can drastically effect the quantity or price. Elasticity is another vital term that everyone should know. Elasticity can help a
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