Microeconomics: Supply and Demand

Prices of Onion (Deshi and Indian) go up receivable to shortage of add up 1. Introduction Microeconomic surmisal is perhaps the some important course in all economics and business programs. I am just trying to discuss near the role of theory or models in com/microeconomics-chapter-4/microeconomics, discuss the basic methodology of economics, and distinguish betwixt positive and normative analysis. Our main target in this assignment is to issue an essay about microeconomics related consequence which is published by the newspapers recently.After poring over the newspaper I break got a microeconomic related topic which charges go up, as a result, demand will decrease. According to my former study knowledge, I had some ideas about convergenceion represent, import cost, rapture cost and other ssimilar cost by which we can determine the cost and profit. After taking the microeconomic course, it seems to me that the scenario is different. Here we need not single production a nd other ssimilar cost and profit but also supply and demand, changing situation, income and substitution effect, sense of balance price, elasticity, cost behavior, marketplace position etc..Here my selected product is Onions (Deshi and Indian). This is because onion plant plants are one of the most important commodities of our daily meal. Recently the prices of onions go up in the retail market not only Deshi onion but also Indian onion. Retailer said that, the prices of local onion increased by Tk. 10 a kg and was selling at Tk. 70 a kg while the just harvested onion was sell at Tk. 45 a kg and Indian onion at Tk. 40 a kg over the last week overdue to supply shortage.So that, I have decided to write an essay about onion (Deshi and Indian) where Indian onion is the substitute of Deshi onions including the demand and supply of onions, equilibrium price, effect on price, substitution and income effect, production function, elasticity, cost function and market structure of onion. 2. Data Collection After studying the newspapers, I have found a microeconomic related topic that is, Onion, flour, vegetables, fish prices go up which is published by Financial Express on fifteenth December, 2012 and Prices of onions, green chili skyrocket which is published by New maturate on 22 December, 2012.So I have taken two commodity Deshi onion and Indian onion. For getting more information I visited 2 markets which is nearest of my area due to know about the supply and period and previous price and demand for two types of onions. a) Nayabazar Market b) Babubazar Market 3. hold 3. 1. Law of demand We know that, consumer purchase more products when the price is disappoint and they buy fewer products at higher price where other things live the same. We also know that, there is an inverse relationship between price and quantity demended according to the law of demand.