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An explanation of how decision-making is dealt with in economic analysis requires an examination of the main factors at play. These factors amongst others are looked at as a base for decision making. Supply and Demand are the most fundamental tools used in economic analysis. I will explain what demand is and how the demand curve is derived. I will also write about Supply and its relationship with Demand. I will examine equilibrium price (market clearing price) and how we can calculate or plot it. I will attempt to show how market surpluses and market shortages are caused and their effect on product prices. Factors of cost and the decisions regarding cost will be covered. I hope to covey how cost is correlated with price which in turn is dictated by market supply and demand configurations. Finally I will be discussing Marginal Analysis and its benefits for economic analysis. While there are many other factors involved in decision making these are the ones I have chosen to focus on......
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Title: Decision Making In Economic Analysis
Approximate Word Count: 1131
Approximate Pages: 5 (250 words per double-spaced page)
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