Microeconomics, Macroeconomics, And Macroeconomics

1871 Words Mar 6th, 2015 8 Pages
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 Economics 3
The Importance of Economics Supply and demand is one of the most important topics that really must be fully comprehended in order to understand what follows in economics. Part of this reason is because supply and demand is essential in other topics such as shifts and looking at cost curves. Demand can be described as the consumers of the market. An important term to know is the law of demand which means “the higher the purchase price, the more goods or services purchased and vice versa” (O 'sullivan, Shefferin, & Perez, 2014). Demand will always have a downslope. Supply on the other hand, which will always have an upslope, can be described as the producers. Just like there is a law for demand, there is a law for supply. Law…
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