Market Equilibrating Process Paper
Economics helps to understand how our efforts to produce goods and the products themselves are related, including the monetary aspects. On the national level this is macroeconomics and on a more personal level it is microeconomics. According to McConnell, Brue and Flynn “The market system permits consumers, resource suppliers, and businesses to pursue and further their self-interest. In competitive markets, prices adjust to the equilibrium level at which quantity demanded equals quantity supplied. The equilibrium price and quantity are those indicated by the intersection of the supply and demand curves for any product or resource. An increase in demand increases equilibrium price and quantity; a decrease in demand decreases equilibrium price and quantity. An increase in supply reduces equilibrium price but increases equilibrium quantity; a decrease in supply increases equilibrium price but reduces equilibrium quantity.” Microeconomics and Macroeconomics
According to Investopedia “The field of economics is broken down into two distinct areas of study: microeconomics and macroeconomics. Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. People who have any desire to start their own business or who want to learn the rationale behind the pricing of particular products and services would be more interested in this area. Macroeconomics, on the other hand, looks at the big picture (hence "macro"). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world.” Personal Economics
According to www.bls.gov “Accountants and auditors help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time. They analyze and communicate financial information for various entities such as...
Please join StudyMode to read the full document