Game Theory
Category: Economic Conditions
Microeconomics
According to Economypedia, “Microeconomics is a division of economics, which studies the ways by which individuals, firms and families take decisions regarding allocation of the limited amount of resources at their disposal. The studies are done in a context of markets where goods and services are traded.”
Demand and Supply of Foreign Exchange
Demand and Supply of Foreign Exchange influences the determination of exchange rates and vice versa. The demand for foreign exchange is inversely proportional to the rise of exchange rate. As the exchange rate goes up the demand for foreign exchange declines. The quantity of foreign exchange demanded falls. The supply of foreign exchange shifts depending on demand and not on the exchange rate. If the supply aspect of transaction is plotted on a graph it will be vertical since the supply of foreign currency deposits available at any time is fixed.
Economics Theory
What is Economics?
In simplest terms, economics is the study of how people choose to use limited resources. The term “resources” refers to things such as money, time, people, talents or knowledge, land, buildings, equipment, tools, crops, minerals, or virtually any other product or service of which there is a limited supply. Thus, economics is the study of the ways in which people make important choices every day regarding how to acquire, sell, and use things of which there is a limited supply.
