Microeconomics is a board subject in economics, and many students do feel confused about applying economic theories in daily life. This confusion would also apply when a student is given or assigned micro economics homework answers, and students can come with wrong interpretation.
The behavior of consumers, industries comes under micro economics, and it is termed as the social economics by all. The ability to make decision s within a limited range of options available is the beauty of microeconomics. These decisions normally affect the demand and supply system, and this is studied in detail.
The question like how global warming can affect real estate price would fall under the purview of microeconomics. The reason is that when global warming increases, the temperature increases and that would affect climate. There would be an increased drought, and that can lead to water scarcity. This would bring the real estate price down and would affect business.
The questions like why senior citizens should be offered a financial aid in old age by society are well answered by microeconomics. Microeconomics also addresses the issue of supporting jobless citizens during flood and famine and other war related issues.
Online choosing of microeconomics
Online transactions are on the increase these days. Secured digital payment system and high penetration of internet along with a rise in smart phones sales have ensured that people resort to increased online purchases. Manuals as micro economics homework answers are of great help in this case.
Assume that a person wants to purchase a mp3 player having certain specifications, and the person would look into online stores like e-bay or craigslist and would make a choice. The choice is limited for the person because the options that are being looked for is not available easily and that is when purchase options get reduced to two sits namely E-bay and Craigslist. This limiting of choices based on the options available are examples of microeconomics.
Scarcity in microeconomics
There are situations when there is a huge demand for a thing, but resources are scarce. Good hygienic food is in demand in a place which is affected by floods, but the resource of providing food to all would be limited, and this is an example of microeconomics.
High-quality water is a thing that would be in demand, but availability would be less due to polluted water. These two examples show the application of microeconomics in everyday life to an extent. Manuals as micro economics homework answers can be of real help in this case.
Demand and supply in microeconomics
Demand is a concept that triggers the business growth of an enterprise and a country. The demand and supply is one factor that would affect the price of a product. There are conditions in which competing companies have come with the same specified product under the same price range so that there is no scope for a third party entry.
Pepsi and Coca Cola has managed to keep a large chunk of market share by introducing to the market the same set of products without having any big difference in a price range. Some companies have created extra demand for a common daily used thing, and Starbucks has created an extra demand for coffee. The brand appeal has ensured that people flock to these shops in search of quality coffee.
Price elasticity in microeconomics
There is situation in which a company would create an extra demand for a product by offering a discount on items. There is situation in which price hike may not bring a drastic change in the demand for a product but may affect the demand for some other products. For example, if a price of cigarette is hiked, people may not quit smoking but may reduce food and other things, and the extra savings is spent in a cigarette. Student trying micro economics homework answers should understand theory involved in life examples.
The marginal utility is another aspect of microeconomics that is explained above. A consumer may spend some money on things that would give them pleasure rather than wasting on things that do not fetch them good mental satisfaction
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