What is applied to microeconomics?

microeconomics is derived from the Greek term "micro", which means "small" and economy, maternal discipline. It is under the economicity of the economy that seeks to understand how individuals, households or consumers and societies or producers decide to allocate their limited resources and how to rationally get to these decisions. Applied microeconomics is simply using microeconomic concepts to understand the behavior of manufacturers and buyers. The counterpart on a larger scale, macroeconomics, is best known for solving the sum of all economic activities in the country, ie it concerns the overall wealth of the nation. Finally, the priorities and wishes of end consumers determine what they buy, and when critical meat is achieved, what will be produced and what sources will be consumed. For example, if households and end consumers want hamburgers, then restaurants produce hamburgers and buy raw materials to make them. On the other hand, farmers will be encouraged to raise cattle and use the sources of POtřebné to fulfill the demand.

The supply and demand Act is the core of the microeconomics applied. All other factors have maintained constant, raising the price will reduce demand, because some buyers will no longer be able to afford the product in question. If prices rise, more manufacturers will enter the market, enthusiastically, such as the prospect of greater income. For example, at the end of 2011, gold doubled in a few weeks, partly due to economic uncertainty on both sides of the Atlantic. As a result, it is useful to open previously sleeping mines and even sliding for expensive metal could experience a revival.

Applied microeconomic models assume that mass markets have enough income for existential goods and even some discretion purchases. At the end of 2011, however, the United States and Industrial Nations of the euro area have been delayed by slow economies for the fourth year. Governments have been caught between the need for a non -interruptedThese deficits of non -socialism and the desire to be seen to help producers and consumers. This is not to say that microeconomics failed with politicians. After all, people continued to eat, drink, play and travel if perhaps more carefully.