Principles of Economics: Supply and Demand – Essay Example
The paper "Principles of Economics: Supply and Demand" is an exceptional example of an essay on macro and microeconomics.
As a student of economics, it is certain that I knew, long before reading this text, that supply refers to the number of goods or services a trader is willing and able to sell. At the same time, I also knew that demand is the number of goods or services a consumer is willing and able to purchase. Meaning, both supply and demand are qualified by the willingness and ability to sell and buy them respectively. This constitutes a very significant topic in this book.
With that in mind, I would like to say that reading Macroeconomics 3rd Edition helped me to understand much about these concepts. Before encountering this book, I thought that a trader would just decide to supply commodities to the market without having any consideration. However, now I know that no such thing could be done. Instead, as Paul Krugman and Robin Wells examine, the trader can only determine the right quantity of the commodity to take to the market has looked at the price of that commodity, prices of similar commodities, future expectations of changes in prices, costs of production and government policies(Mankiw, N.G., 2006).
On the other hand, I learned that the amount of commodities demanded by consumers depends on the level of their income, quantity supplied, future expectations in changes in production and government policies (Mankiw, N.G., 2006). Therefore, as an aspiring entrepreneur, I will make good use of these lessons to help me supply the right amount of commodities to the market. Otherwise, if I fail to consider such market prevailing conditions, I would have a dead stock or run at a loss, an experience I do not want to have.