Principle Of Economics

Added on - 03 Dec 2019

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Principle Of Economics1
TABLE OF CONTENTSINTRODUCTION................................................................................................................................3PART A................................................................................................................................................3PART B.................................................................................................................................................6CONCLUSION...................................................................................................................................7REFERENCES.....................................................................................................................................92
INTRODUCTIONEconomics can be termed as a factor which provides enhanced level of informationregarding production, allocation and usage of diverse accessible resources in order to meet theneeds and demand of economic system. In this support, principles of economics mainly dependson the effective examination of economical components along with considering its influence onthe external and internal conditions (Tillman, 2012). In current report the learning will focus onfactors which relates with the impact of advancement in number of customers. It will provideinformation about influence of advancement over equilibrium price and quantity of a product.Moreover, it will also focus on description regarding calculation of Consumer Prices Indexmeasure in relation to UK inflation.PART AImpact of increase in number of customers on the equilibrium price and quantity of a productAs per the structured study it can be said that the equilibrium is a economic factor whichimpacts the operations of business firms in diverse manner. It is a point where supply anddemand of product in the market is is equal. In the support of this, it can be said that with animproved focus on supply and demand curve the management of business organisation can easilyunderstand the relationship among cost and quantity (Aseev, 2012). In other aspect, it is one ofkey reason that modifications in the demand and supply curve influences the equilibrium point indiverse manner.Demand and supply curveIt is a curve in which graphical plots indicates quantity and price on different axis whichcan be termed as horizontal and vertical axis. If demand curve reflects the downward slope thatmeans the quantity and price is having inverse level of relationship. It has been spotted that thechanges in price influences the demand in diverse manner (Kuhn, 2013). Advancement in priceof product decreases the demand of product and reduction in price increases the demand ofproduct. If supply curve indicates the upward slope that means price and quantity both havedirect relationship (Sheth, 2011). Moreover, decrease in price also reduces the supply andincrease in price also advance the supply of product. Section where both supply and demandintersects it is considered as a equilibrium point.Page |3