Supply and Demand Simulation
Economics is a complicated subject matter most people do not comprehend entirely. According to Colander (2010), economics is the study of how human beings manage their wants and desires. Buyers based their wants and needs on marginal costs and marginal benefits. Sellers based their supply production on the consumer demand shift, and seller set their prices according to the demand change. That is just some of the basics of economics.
There are two types of economic structure: macroeconomics and microeconomics. Colander (2010) defines microeconomics as “the study of how individual choice is influenced by economic forces” and defines macroeconomics as “the study of the economy as a whole” (p. 4). Two examples of macroeconomics are unemployment and international trade. However, students getting a college education or degree, and couples deciding to have a baby or child are two examples of microeconomics. The microeconomics examples show how an individual can make a choice based on his or her income, living expectation and lifestyle while macroeconomics cover the “performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets” (Macroeconomics, 2013). For the macroeconomic examples given above, macroeconomists study the aggregated indicators of unemployment rates to determine the employment opportunities. Macroeconomists also study the aggregated indicators of international trades to determine the importing and exporting rates. Macroeconomists want to understand how the whole economy functions on a national level to a global level. Some of the determining factors are supply and demand.
Colander (2010) refers supply to “a schedule of quantities a seller is willing to sell per unit of time at various prices, other things constant” (p. 91) and demand to “a schedule of quantities of a good that will be bought per unit of time in various prices, other things constant” (p. 85). Factors of shifting a supply curve depend on
There are two types of economic structure: macroeconomics and microeconomics. Colander (2010) defines microeconomics as “the study of how individual choice is influenced by economic forces” and defines macroeconomics as “the study of the economy as a whole” (p. 4). Two examples of macroeconomics are unemployment and international trade. However, students getting a college education or degree, and couples deciding to have a baby or child are two examples of microeconomics. The microeconomics examples show how an individual can make a choice based on his or her income, living expectation and lifestyle while macroeconomics cover the “performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets” (Macroeconomics, 2013). For the macroeconomic examples given above, macroeconomists study the aggregated indicators of unemployment rates to determine the employment opportunities. Macroeconomists also study the aggregated indicators of international trades to determine the importing and exporting rates. Macroeconomists want to understand how the whole economy functions on a national level to a global level. Some of the determining factors are supply and demand.
Colander (2010) refers supply to “a schedule of quantities a seller is willing to sell per unit of time at various prices, other things constant” (p. 91) and demand to “a schedule of quantities of a good that will be bought per unit of time in various prices, other things constant” (p. 85). Factors of shifting a supply curve depend on