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Basic Concepts for Economic Reasoning

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Basic Concepts for Economic Reasoning
Running head: THE BASIC CONCEPTS FOR ECONOMIC REASONING

The Basic Concepts for Economic Reasoning
International Economics

Will Bury`s Gose Global Part I Will Bury has invented a technology that gives the option of reading text materials digitally or

listening to it with synthetic voice which sound realistic (Will burry`s goes global, UOP).

In this paper I will explain economic concepts founded in Will Bur’s scenario, which will Bury`s have to take some important business decisions.
The economic concepts in Bury’s Price Elasticity Scenario are:

A. Supply and demand

Supply and demand is one of the and basic concepts of the global economics and is

Considered a backbone of market economy. Demand is defined as the amount of product that consumers are able and willing to purchase during a specific period of time at each of a series of possible
According to the law of demand, the higher the price of the good the less People will demand it, if all other factors remain equal. So there is inverse relationship Between the price and quantity demanded. The main factors which affect the demand and finally the Purchases are. These factors will be help to find out the amount of books he needs to sell.

1. Number of consumers in market

2. Consumers income

3. Consumers preferences

4. Similar Goods prices

5. Consumer’s expectations about future prices.

Supply is defined as the amount of product that producers are able and willing to make available for sale At each of the series of prices during a specific period of time (Mc Connell and
Brue).According to the Law of Supply as price increases, the quantity of the supply increases; and as the price falls, the quantity Supplied fall. So there is a direct relationship between price and the quantity supplied. Basic factors Which affect the supply is

1. Number of sellers in the market

2. Price expectation

3. Resource price

4. Prices of other goods

5.

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