Write 4 pages with APA style on Understanding Microeconomics Issues. The essay “Understanding Microeconomics Issues” talks about the important role of microeconomics in the understanding of the relati

  

Write 4 pages with APA style on Understanding Microeconomics Issues. The essay “Understanding Microeconomics Issues” talks about the important role of microeconomics in the understanding of the relationship between the consumer, the producer and the trend in the market.There are important issues that must be understood in microeconomics and they include supply and demand, utility, and market failure and competition. All these issues are important to the understanding of the relationship between the consumer, the producer and the trend in the market. Their relationship provides the key to the understanding of economics. As goods and services are produced for sale, there are a number of factors that play a role in determining the prices at which the products will be sold.The backbone of any market economy and the most significant concept in economics is the supply and demand. Demand can be described as the quantity of a product or the services that are desired by the consumers. The amount of product that the people are willing to buy at a given price is the quantity demanded and its relationship with the price is referred to as demand relationship.Supply is described as the quantity of product and services that the market can offer. The amount of product that the producers are willing to supply at a certain price is the quantity supplied and its relationship with the price is referred to as supply relationship. An increase in the price of a commodity is accompanied by an inverse relationship in the quantity demanded, if all the other factors are held constant.

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