Economic concepts to my personal experience Essay

Economic concepts to my personal experience - Essay ExampleThis piece looks at how some of the microeconomic concepts can be applied to personal life and how they relate to our everyday usage regarding the unspoileds and services. Micro economics is mainly accommodating for me in making the decision on switching between the alternatives available for a particular satisfaction. To draw a balance between my budget and prices of the commodity. It sure enough helps in buying decision in my personal life.For starters, let us consider the simple fact of buying and selling goods and services. When we want to buy a particular good, there are a host of factors that determine our decision and influence our purchase right from the price of the good to the quality of the good and the competitors for the disgrace of the product. We measure the utility of the good against the price and then take a decision regarding whether to buy it or not.If we compare the utility value of a good against th e price, we would come to a fairly reasonable conclusion about maximizing utility and thus contributing to our decision to buy the good. This applies in the case of galore(postnominal) household goods and services and can be used to determine whether a particular good ought to be bought or not.The Microeconomic theory helps in determination answers to the three basic fundamental questions for any business entity in any economy(1) what to produce, (2) how to produce and (3) for whom to produce in order to utilize the available unprecedented resources efficiently. That is why the Price theory, Demand concepts and theories of Market structure are the important elements of micro economics. Microeconomic theory studies the economic behavior of individual decision-making units such as consumers, resource owners (i.e. households who provide services to the business entities in exchange of the income) and business firms in a free-enterprise economy. Proper analysis of all these 3 areas o f busy helps the business entity to perform efficiently. If the business