Micro Economics

effects of trade and the gross demestic product

That would depend on the product your talking about.Fuel prices are a huge factor in almost everything as well as the overall health of the economy in general.Competition would be another thing that would affect supply and demand as well as availability of said product or the components to create it.The question is too vauge to really answer it properly.

They promote economic growth by adding money into the economy, which is then spent on goods and services. That leads to greater availability of funds to lend, which leads to lower interest rates, which leads to greater borrowing for business investment, which leads to business expansion, which leads to more employment, which leads to economic growth.

The Federal Reserve System implements its monetary policy by controlling the federal funds rate, which is the interest rate for interbank lending operations.

If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.

If the price floor is lower than market equilibrium then the government imposed regulation is non-binding, resulting in no change to the market.

price ceiling makes a bar on the equilibrium prices. it compels the suppliers to charge the ceiling price from the consumers. it is generally lower than the equilibrium price. at this price quantity supplied is less than the quantity demanded and the market is not in equilibrium.

If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.

The importance of microeconomics is to understand the working of the free market economy. It shows how the prices of the products and the factors of production are determined. It shows how the goods and services produced are distributed among the various people for consumption through market mechanism.

importance of microeconomic

An increase in national income affects the increase in the standard of living because an increase in income increases the standard of living. When the national income is low, people are poorer.

The Fallacy of Composition: Belief that individual benefit automatically translates into social benefit

The Post Hoc Fallacy: (cause-and-effect fallacy) because event A took place, event B was caused by event A

The Fallacy of Single Causation: A single factor or person caused a particular event to occur.

No. Even a simple understanding of economics and price theory will prove this. No matter the firm's market power, price is always set by supply and demand. They can try and command a price on their own, but competitors will find a way to sell the same thing at a lower price. Supply and Demand always dictate price...even in gas prices contrary to what the media would have you believe. If Americans quit using so mus gas, the price would drop. But we keep buying it up and the demand rises during the summer. Since there is only a fixed amount of the product available for the world, this increased demand forces the price up ...because somewhere, somebody is willing to pay it. And if nobody is willing to pay it, they will lower the price to encourage it.

Now, what if the government forced them to lower the price. Suppose they set a limit at 2.00 cents a gallon. The result? There would never be enough gas to last. People would take the opportunity to fill up all their cars, their mowers, their gas cans, their boat...and then the guy who just needs a few gallons can't get any because everyone else bought it up due to an artificial price fix.

Supply and demand are the factors that affect price. Not anything else. It's NOT a company's "greedy" desire for profit. In fact, big oil companies make only about 12 cents on each gallon of gas...the government taxes each gallon nearly 20 cents...so do the math. If X oil company posts a profit of 12 billion dollars, the media goes nuts and everybody calls them greedy...but that means the government just got 20 billion in taxes off the same gas.

Instead of phony "price ceilings" let supply and demand have their way in the market.

Price ceiling is government rules or laws setting price floors or ceilings that forbid the adjustment of price to clear markets. Price ceilings make it illegal for sellers to charge more than a specific maximum price. ceilings may be introduced when a shortage of a commodity threatens to raise its price a lot.

A book by Adam Smith.

yes

Since resources are limited,the society cannot get all the goods and services the people want.And hence some mechanisms are used to guide the use of resources in the production of goods and services to satisfy as many as people wants as possible.

When the society do not know what to produce,the Production Possibility Frontier [PPF] is used to represent a boundary between those combination of goods and services which can be produced and those which cannot be produced.

high inflation during the 1970s

An oligopoly is characterized by mutual interdependence because the actions of one firm directly affect the decisions and outcomes of others in the market. Since a few firms dominate the market, they must consider their rivals' potential reactions when making pricing, output, or marketing decisions. This interdependence leads to strategic behavior, where firms may engage in collusion or price wars, as each seeks to maximize their profits while anticipating competitors' moves. As a result, the market dynamics are more complex than in perfect competition or monopoly.

Losses result in exit and release resources to flow to markets where there are profits.

the average variable cost curve and average cost curve are u- shaped because of the law of variable proportions.