The Law of Supply is a fundamental principle in economics that states:

• As the price of a good or service increases, the quantity supplied also increases.
• As the price decreases, the quantity supplied decreases.

This happens because higher prices make production more profitable, encouraging businesses to produce and sell more. Conversely, when prices drop, suppliers may reduce production because it becomes less profitable.

People often save their money in banks and savings institutions to earn a stable interest rate. However, for those seeking higher returns, investing in stocks and bonds can be a lucrative alternative—though it comes with varying levels of risk.

Economic indicators serve as vital tools for assessing the health of an economy and predicting future trends. Whether you are an investor, policymaker, or business owner, understanding these indicators can provide valuable insights into economic performance and potential shifts in the market. This article explores the relevance of economic indicators, their role in forecasting, and key indicators that every analyst should monitor.

Market imperatives are the essential strategic priorities that businesses must address to remain competitive and relevant in their industry. These imperatives shape how a company positions itself, responds to customer needs, and differentiates from competitors. While they may vary across industries, some common market imperatives include:

Every day, advertisers compete for your attention, investing millions to persuade you to buy their products. With limited income and time, your goal should be to make informed decisions that provide the best value. In this guide, you'll discover key principles for making smart purchasing decisions and maximizing your buying power.

Americans rely on credit for everyday purchases, major investments, and financial flexibility. Each year, billions of dollars are borrowed and lent, fueling economic growth at both individual and governmental levels. The ability to access credit is a fundamental driver of the U.S. economy, allowing consumers and businesses to make essential purchases and investments.

One would be hard pressed these days to find any defenders of the sort of full-blown economic plannification characteristic of the late Soviet Union and other Communist states, and with good reason given their economic inefficiency. The departure from plannification is, of course, celebrated by neo-liberal champions of capitalism.

The words economy and economics are often used interchangeably, but they have distinct meanings. While both are interrelated and essential to understanding how societies function, they serve different purposes. The economy refers to the actual system of production, distribution, and consumption of goods and services within a country or region. Economics, on the other hand, is the study of these systems, analyzing their functioning, efficiency, and impact on human life.

The classical model was a term coined by Keynes in the 1930s to represent basically all the ideas of economics as they apply to the macroeconomy starting with Adam Smith in the 1700s all the way up to the writings of Arthur Pigou in the 1930s.

A producer uses raw materials, capital, and labor to produce goods and services. Here, we will present a simple model for how they decide how much to produce and which technology to use for production. A large part of producer theory is very similar to consumer theory.

Some government intervention occurs in the American economy, but generally the marketplace answers the three basic economic questions of what, how, and for whom goods and services should be produced. In command (controlled) economies, however, the government (and not the market) answers these three basic questions. Read on to learn about the major alternative to market capitalism

The problem with the IS-LM model

The starting point of the Aggregate Demand - Aggregate Supply or AD-AS model is an assumption in the IS-LM model (and in the cross model) that limits its usefulness. This is the assumption that if firms where to choose the profit maximizing quantity of L (LOPT), they would produce more than the aggregate demand. In the IS-LM, YOPT > YD must hold as discussed in section Aggregate supply.

To realize why this is a problem in the IS-LM model, we gradually increase the aggregate demand byincreasing G. We can illustrate the process using figure 12.6 in Section The Labor Market