4 Vital Economic Relationships You Need To Know
Students often take programming language assignment help along with online economics assignment help while doing their economics assignments. Economics is an extremely interesting and vast subject. There are numerous applications of economics all around us.
Every human must know the basics of economics since they can use it to make smarter investments and increase their earnings. To know about the basics of economics, they must know a few economic relationships. Below you can find some essential suggestions curated by the multisim assignment helper professionals.
Price Up, Demand Down
Economists draw demand curves to explain this extremely important economic concept. This is part of the concept that all businesses use to maximise their profit. In layman's terms, this concept says that when you hike up the price of a product, the demand for the same falls. This is because, in an economy, the average buyer always prefers to pay less for the products. So, when the prices go up, demand falls.
However, the exception to this rule is fancy, premium products. The target customers of premium products assume the price tag as the mark of their superiority. So, they take pride in paying the extra money to get ownership of the same.
Price Up, Supply Up
This is the opposite of the concept we discussed previously. It works on a different mechanism, and it states that when prices go up, supply also goes up. When companies charge more for a product, they try to produce it more. This works in the company's best interest, as it looks to earn more revenue from the higher supply.
Interest rate Up, Investment Up
Several factors are involved in deciding how much you must invest. However, the number one reason that decides it is the interest rate. Interest is the money you receive for lending funds to another. So, as an investor, we always look for the best possible interest rate while investing. The more you will get for "lending out" money, the more motivated you will feel about investing.
Money Supply Up, Interest rate Down
As interest rates determine the influx of funds, the supply of money determines the rise and fall of interest rates. Banks and lenders cannot afford to charge high-interest rates if there is a large supply of funds in the market.
These are some of the economic concepts that every investor must know. If you have trouble understanding any terminologies, hire mechanical assignment help service experts and clear your doubts.
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