Economics

Economics is the study of how people choose to use resources. Economics shock, demand and supply are all important parts of economics.

Economic shock is mainly when an event that can cause a sudden, drastic change in an economy. For example, if it were suddenly discovered that there is no more oil in the world, this would cause economic shock, causing prices to increase. There are various factors that will shirt the supply and demand curves. These economic shocks will have an impact on the price of a product, as well as the quantity that is produced and sold.  First of all, supply is the amount of goods or services that are supplied by producers. Secondly, demand is the total amount of goods or services that buyers are willing to purchase. An important part of economic shocks is the equilibrium point. It is the point where supply and demand curves intersect, this is when quantity supplied and demanded are equal.

Economics is one the biggest part of business. Companies watch the market and react depending on it. This shows that when one market increase its price, the other market’s demand would increase.