Economic Analysis

Economic Analysis

Kenneth Machol

ECO 365

January 21, 2013

Christopher Rakovalis

Economic Analysis

In the economy that we live in today there are several challenges that face an up and coming industry as well as a industry that has been around for a very long time. When an industry is first starting out there are many things that the business needs to look out for. Once they are able to agree on the market they can make an attempt to enter the competition for customers with other businesses. The business world is filled with up and downs and the demand for a certain product will always be either in great demand or there will be no demand for the product at all. The markets will always be unpredictable depending on how the economy is doing and so a business needs to always be ready to meet any kind of demand that the consumer may have. A company will always have its good and bad years depending on the economy and also the product that the company sells. There are two key provisions that define the way that the economy runs on a daily basis. The two provisions are movement along and shift of the demand curve. Both of these provisions mean something significantly in the business world because each term means something that is going on with the way that the business is run. In the following paragraphs both of these provisions will be defined in more depth to bring a better understanding on how they affect the country.

The term movement along in the business world is defined as a demand in the connection between a variety of the price and the quantity customers are ready and capable to purchase, hold all other things steady. Customers generally are ready to purchase extra of a item at lesser prices and fewer at upper prices. That is what the term movement along is defined in the business world. A progress down the demand curve is caused as a result of a sudden alteration within cost of the first-rate or else check. For example, a...