Economics is the study of how groups like governments, societies, businesses, households and individuals allocate their scarce resources. The economy is a part of a web that links each and every one of us. Economics deal with our individual choices, money, production and consumption, trade and markets, employment and work, taxes, and so much more. Basically, economics gives us the explanation to how and why we get the things we want and need.
Here is an Economic guide and net income facts for starters:
Supply and Demand
This is the backbone of the market economy. Demand is how much a product or service is desired by consumers while supply is how much the market can offer. Demand relationship is the relationship between the price and quantity while supply relationship is the relationship between price and how much a good or service is supplied to the market.
The concept of this is the underlying laws of demand and supply which represents the advantage a person gains from obtaining or consuming the good or service. This topic explains how and why we aim to gain optimal satisfaction in dealing with scarcity.
Elasticity is the degree of how demand and supply reacts to change in price. Elasticity varies from different products because some products are more essential to consumers than others. A high elastic good or service is when a slight change in the price leads to a sharp change in quantity demanded or supply.
An easy way to calculate the elasticity of a demand or supply is to use this formula.
Net income or NI is a company or business’s total profit. This is calculated by taking revenues and subtracting it from the expenses of the business like interest and taxes. This number is an important measure to see how much the company is making over a period of time.
Net income can also measure an individual’s income.