Question

Law of Supply and Demand Microeconomics vs. Macroeconomics Gross Domestic Product (GDP)

definition and example.

Answer 1

1

If wetalk in simple terms the law of supply says that if other things are held constant then price and quantity supplied are directly related which means if the price increases , the quantity supplied will increase and  vice versa

for example if there is more subsidy given to the suppliers then they will supply more good and services in the market

2

law of demand says that if other things are held constant then price and quantity demanded are inversely related which means it price increases then quantity demanded will decrease so when there is increase in the price of any good let's say bread then people will demand it less

the good has to be normal good

3

GDP is the final production value of goods and services that is produced within the domestic boundary of a country in a financial year

it is generally measured on quarterly or yearly basis

for example it includes consumption, investment ,government spending and net export in its self

4

microeconomics and macroeconomics are two type of economics

If we talk about microeconomics then it is at a smaller level like for a firm or individual

the examples of it can be finding the demand and supply for any good or service in the market

when we talk about macroeconomics then we are talking about the bigger picture of the economy like calculation of unemployment rate, inflation level price level etc