How macroeconomics help to understand shifts in supply


Write 700 - 1,050-wordpaper of no more than summarizing the content. Address the following:

 

  • Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic.
  • Identify at least one shift of the supply curve and one shift of the demand curve in the simulation. What causes the shifts?
  • For each shift, analyze how it would affect the equilibrium price, quantity, and decision making.
  • How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?
  • How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
  • How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
  • Relating to the simulation, explain how the price elasticity of demand affects a consumer's purchasing and the firm's pricing strategy.

 

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Microeconomics: How macroeconomics help to understand shifts in supply
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