Monday, September 13, 2010

Microeconomics Could Serve You Well

Well, it looks like many small towns and communities throughout the United States now take bull by the horns, and work with associations of local economic development, city analysts, and trading rooms. They want to get their economy cooking again, and they are tired sigh and moan, and complain about the global economic downturn, the price of real estat, and all the "For Rent signs" in the center of the shopping-center business is no longer in LB.

City government know they need the tax receipt to those small businesses want less regulation, and those who wish to work openly. But before you go and join one of the organizations or start installing two cents, I believe you need to know a little about the micro economy. Now, you may be able to go online, or go to the bookstore and take a book on the topic. However, if you really want to learn the basic principles of micro economics, I suggest you read some of the older text books until you have a good working knowledge base.

I realize of course many who have not read the book since economics courses or high school, but when you pull out one of your old text books, or can go online and buy a micro-economic books to help you refresh your memory. Let me suggest a few books as I have in my personal library has helped me very much, not only with the knowledge of my own personal work, and my writing, but also my ability to describe the micro economy to others when I was sitting at the Symposium , conference, or talk with other business leaders;

1. "Micro Economics," by Edwin G. Dolan and Lindsay D. David, 1986
2. "Micro Economic Theory," by Dominick Salvatore, 1974

Of course, I recommend two books, or books like them. Many of the books of the new economy is too politically correct, and a little bit tired in their view of capitalism. Capitalism and free market system is very simple and at the micro economic level you can see the things that happen in real-time, as long as you understand what's happening, you can help increase sales, increase income tax, and get your city moving again . Please consider this.

Lance Winslow is the founder retired from Nationwide Franchise Chain, and now run line Think Tank. Lance Winslow believes the U.S. economy.

Wednesday, September 8, 2010

Micro Economics - Understanding the Law of Demand and Supply

Micro-economy is a concern with
  1. Determining the price we pay for products and services.
  2. What is the output required by the market.
  3. The effects of government intervention in market forces.
Understanding the micro-economy will help us to analyze the nature of the offer and demand concepts and how they affect the operation of a market economy.

A. Request
In the case of the micro economy, demand is defined as the relationship between product prices and customers' desire to buy a certain quality.The laws also demand to price and quality of the sale, if such price increase in the quality of product sold decrease and the price, the quality of reduction products sold increased.

B. Supply
Supply results reflect the readiness of suppliers to produce and sell at market prices that occurred and these factors affect all high supplier. provided. For most products, the amount offered will be increased by increasing the price level, all other factors remain constant.
Supply law determines as a) the amount offered to increase the price.
b) Quantities offered smaller with lower prices.
c) manufacturers increase their product price increase supply.

C. Demand and supply Equilibrium
When prices fell to the buyer willing to pay, it resulted in a balance. But the effect occurs when the price is too low. In fact, the strength of demand and supply leading to equilibrium price and quantity.
a) Because the demand is greater than supply, price level increases.
b) A greater supply than demand, price level fell.
c) Only one equilibrium price guarantee

D. Other influences have four fundamental change we can learn, any changes affecting the supply or demand:
a) a positive demand trends will increase demand.
b) a negative demand shift will decrease demand.
c) positive supply shift will increase demand.
s) negative supply shift will decrease demand.

E. Government intervention
Government intervention designed to achieve:
a) the fair distribution of income among individuals and regions.
b) To promote the employment and income growth.
c) To protect low-income recipients.
and include:
a) the minimum wage.
b) rent control.
c) The Council Farm marketing.
d) Tax.

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