Analytical tools in making decisions concerning increasing commodity Essay

Analytical tools in making decisions concerning increasing commodity equipment casualty - Essay ExampleThe government is the referee in making sure that there is fairness in the business. Economics being a social science it revolves the behavioral aspect of the human life which is impose by the scarcity of resources in a person life. In a market the interaction amongst the sellers result what is called economic equilibrium which results the issue of competitiveness in the market. The term economics is a capacious discipline that consists of microeconomics and macroeconomics. Microeconomics Microeconomics is a branch of economics that mainly deals with the decision that the agents of the market make while conducting business. The agents of the market atomic number 18 the people and businesses. In essence the study of microeconomics deals with basics of the market. It is more of specific than general. Microeconomics tries to bring the relevance of the small agents in the market that could be neglected but be very important in the study of economics. The consumers provide the market while the suppliers and the businesses provide with the goods and services. The major dwelling of microeconomics is in the issue and take up forces that operate in the market. The supply forces refers to the availability of goods and services to the market while the affect refers to the availability of customers of unlike products and services in the market. These forces are crucial in the determination of the charge of various commodities in the market. The high the demand it would mean that the goods and services are in short supply while the beginninger the demand it means the goods and services are in high supply. Thus in high demand the prices are in sky rocketing while in low demand the price are very low than normal (Zhang, 2005) Macroeconomics This is a branch of economics that mainly the whole industry in the market earlier than a specific entity like a comp e ither. It tries to look an economy at a wide discern e.g. the general economy of the country. In macroeconomics, issues such as the GDP are keenly followed and how they are touch on by factors such as price take aims, unemployment and the rate of growth. The two terms lead to a give understanding of economics. There could be some differences between them but they still deal with study of production, distribution and consumption of goods. In our module we have greatly dealt with microeconomics which entails eh study of the behavioral aspects and factors affecting the agents of economy. There are various theories that try to explain the term economics. These are the supply and demand theory and the classical theory. The supply and demand theory of economics mainly entails looking at the two forces in the market that all explains the relationship between the buyers and sellers. The other theory is the classical theory which entirely concentrates on the equilibrium in the market w hich operates in the market when the market is not interrupted. The theory mainly stresses on the factor that the market should operate freely without any interference (Adams, 2008). Analytical tools in making decisions concerning increasing commodity price The price of any product affects the sales of any company, which exponentially affects the profits acquired by the company. In any decision making process of any profitable company coming up with price abstract is usually a tricky situation as it directly touches on the customers feelings. At the price level is where the company directly interacts with the customers. Price increase cannot be done overnight but it is usually as a result of many factors that contribute to this course. It is mainly as a result of