EAN: 9783954890941

MICROECONOMICS - AKAMPURIRA ABRAHAM KARTONIERT ...

Human beings have basic wants  and naturally  they are not self sufficient. Therefore  they
have to produce and exchange what they do not have with those who do have it. Right decisions
have to be made in regard to the quantities produced and the prices that will be charged by
firms. This is done through the demand and supply theory. In most economies  supply and demand
face a lot of challenges. Supply challenges range from small firms with structural supply
rigidities to huge firms who act as monopolists and cartels and charge consumers exploitative
prices. These challenges affect the trading position of several economies in the international
trade. Demand is rapidly increasing due to the rapid world increase in population. This study
analyzes the firms' decisions  the supply and demand of a commodity  the price of a commodity
and the way the mentioned variables are affected by small economic groups and individuals.

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