Ten Principles of Economics and How Markets Work rvsd.docx

For the supply curve when prices rise a number of

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their price. For the supply curve, when prices rise, a number of goods supplied to the markets also rise and therefore, the curve slopes upward. The point of intersection of the demand and supply curves is the equilibrium. This implies that a number of goods available in the market match what consumers are willing and able to buy. Prices regulate the amount of goods that are produced and also determine the firms that provide them. We could use farming as an example. Prices of agricultural products determine the wages of the farmers and thus if the prices are high, more people are engaged in agricultural production In conclusion, economics involves a lot of decision-making processes. Individuals have to make decisions regarding the most efficient ways of allocating scarce resources. The Ten Principles of Economics helps students and economists to understand how activities are carried out in economies. The author talks about how people face trade-offs, costs associated with making decisions, and the responsive nature of people to incentives. He also provides
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TEN PRINCIPLES OF ECONOMICS AND HOW MARKETS WORK 5 explanations of how people interact and the nature of the economy as a whole. The demand and supply curves depend on price. When they intersect, they form the equilibrium point.
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TEN PRINCIPLES OF ECONOMICS AND HOW MARKETS WORK 6 References Mankiw, N.G. (2015). Principles of Microeconomics (7th ed.). Retrieved from The University of Phoenix eBook Collection database. Rios, M. C., McConnell, C. R., & Brue, S. L. (2013). Economics: Principles, problems, and policies . McGraw-Hill.
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