There are two different types of economics. Microeconomics goes into detail about the economy, explaining individual markets and the impact it has on buyers and sellers. Macroeconomics is a broad subject that explains issues that affect a whole society, such as economic growth, inflation and unemployment. According to Peter Smith, senior lecturer of economics at the University of Southampton, "Studying economics will also provide you with more general skills, encouraging independent thinking and nurturing numeracy, computing and IT skills." As a student of economics, you will clearly understand the difference between macro and micro economics and how they affect your surroundings.
Supply and demand describes the amount of a product available at a certain price for consumption by the market. Economics professor emeritus Robert Schenk explains that "Some buyers who cannot obtain the product are willing to offer more, and sellers are always willing to accept a higher price. Therefore, the actions of the buyers, as they compete with each other to obtain the amount that is available, drive the price upward." Those who study economics will be able to recognize low demand and bargain for a cheaper price.
When producing a product for the market, it is important to understand the product's impact on the market and your competitor's price. The website Basics of Economics states that "supply is primarily determined by the productivity of inputs, and the cost of the inputs. The production functions show the relationship between quantity of inputs and the quantity of output." Understanding the basics of economics will make it easier for you to create a market for your product and find a price that works.
As a student of economics, you will be able to understand how economics affects not only your community but the world economy. The American Economic Association states that "Although the behavior of individuals is important, economics also addresses the collective behavior of businesses and industries, governments and countries, and the globe as a whole." When traveling, you can use the theory of economics when deciding what time of the year to travel and where you want to travel.