Microeconomics
Principle of Macroeconomics (ECON 210-1504B-09) Unit 1 (IP) Introduction to Macroeconomic Theory Earlene Kirby Instructor: Deborah Mc CaffertyMostly the big coffee houses could buy premium coffee at a lower price. This was a big risk for big businesses, which made a universal success. In no way it effected the demand for coffee, but the premium brand was a big success in the coffee business, because it increased the prices of coffee.Hurricane Katrina- The price of fish was high, because of the damage of the fish supply. *Which makes this a microeconomic. *The prices went up but the quantity was low.*Supply- curves to the left.*demand- stays the same. (3) Inflation increase- With the inflation increase, the dollar value is worth less.
*Which makes this a macroeconomic. *Inflation rises, every dollar buys a smaller percentage of goods and services. *Demand-increasing *Supply-increasing *Equilibrium-Stays the same.[pic 1]