Microeconomics

                                                 Principle of Macroeconomics

                                                (ECON 210-1504B-09)

                                                 Unit 1 (IP) Introduction to Macroeconomic Theory

                                                 Earlene Kirby

                                                Instructor: Deborah Mc Cafferty

1. Mostly the big coffee houses could buy premium coffee at a lower price. This was a big risk for big businesses, which made a universal success. In no way it effected the demand for coffee, but the premium brand was a big success in the coffee business, because it increased the prices of coffee.
2. Hurricane Katrina- The price of fish was high, because of the damage of the fish supply. *Which makes this a microeconomic.

*The prices went up but the quantity was low.

*Supply- curves to the left.

*demand- stays the same.

       (3) Inflation increase- With the inflation increase, the dollar value is worth less.

            *Which makes this a macroeconomic.

            *Inflation rises, every dollar buys a smaller percentage of goods and services.

           *Demand-increasing

         *Supply-increasing

        *Equilibrium-Stays the same.

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