Microeconomics

Microeconomics and the Laws of Supply and Demand
Fedor Emelianenko
ECO/365
July 7, 2013Microeconomics and the Laws of Supply and Demand
Microeconomics is the branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (“Investopedia”, 2014). Macroeconomics is the field of economics that studies the behavior of the aggregate economy Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels (“Investopedia”, 2014).
Two Microeconomics and Macroeconomics Principles or Concepts
The scenario in which Susan Hearst has recommended the vacancy rate be brought down and also the scenario in which Atlantis housing survey has provided statistics on the demand for two bedroom rental apartments are both Microeconomic principles. In both these scenarios the decisions regarding the vacancies and the adjustments apply to Microeconomic concepts of the decision- making process. Although economists all agree that the price of a product or service is a major factor in the consumer decision-making process, it’s not the only factor, and it may not always be the deciding factor. But a principle of microeconomics assumes that, if all other factors are equal, as the price of a product or service goes up, demand for that product or service declines (Davis, 2014).
The scenario in which the government imposed a ceiling on the monthly rental rates for middle- income families is a Macroeconomic principle. Secondly, the scenario regarding Goodlife and Lintech’s move causing an…

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