Three Pane Model

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

2) Interest rate parity (how exchange rate is determined by the flows of capital) and

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/

Microeconomics focuses on supply and demand. A company would look at ways to increase production so that the company could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This allows the company the capability of passing price savings to consumers. Macroeconomics is used as the economy changes such as with inflation. Inflation would cause a company to have a boost of cost in materials from producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand from the effects on equilibrium price.

11.Macroeconomics is best described as the study of A) very large issues.B) the choices made by individual households, firms, and governments.C) the nation's economy as a whole.D) the relationship between inflation and wage inequality.Points Earned: 0.4/0.4Correct Answer(s): C

The interest-rate effect explains that when the price level decreases, consumers have more money left over after consumption (because prices have dropped) which they can then place in financial intermediaries (banks) who can in turn loan those funds out. An increase in the supply of

Many businesses consist with constant decision makings. It can be a group decision making or such as an individual decision making. Microeconomics is the part of economics concerned with single factors and the effects of individual decisions. Business take use of microeconomics data to make multiple of different choices, which could determine the success or failure of their business. Microeconomics is the reliability and currency of the information a business uses, therefore, is usually the most important strategy that the company or enterprise relies on when things get difficult or just wanting to grow their business taking a risk.

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.

Answer: The world economy has shifted dramatically over the past 30 years. We have been moving away from a world in which national economies were relatively self- contained entities, isolated from each other by barriers to cross- border trade and investments; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems.

Macroeconomics deals with large scale phenomena. Microeconomics deals with the options of small economic unit.

An external analysis looks at the general macro environment and industry attractiveness. A PESTEL analysis will be used to look at the macro environment and Porter’s Five Forces framework will follow to provide a clearer picture of industry attractiveness.

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.