The Budget Constraint of Consumers, New Release about Economy and Business

This is my first module of microeconomy, I began with the budget constraint because explains the effects of the stimulus package and is a introduction to the consumer behavior theory. In effect, if people has more money will consume more,but it must be drawn on a graph to understand  the effect on the consumption of  this extra money.

Depending on the preferences of people, an increase of the budget will have different effects. If there isn’t a better consumption choice, consumption will remain equal. Consumers want something more useful  for them (and affordable)  to change their shopping habits.

A companies can use the budget constraint to determine what will happen after a change of prices or a new tax on consumption, and make the correct decision to increase their profit. If a company want to sell more,for example, may have to decrease prices, but an incorrect discount will not give the best profit.All this is explained with graphs in the consumer behavior theory.

Check This Out!

Other important issue: holidays. I will be the whole August on holidays, a However I know you want more updates and to disappoint my readers.I have a lot more stuff, but I will give priority to a  new update in The Web Tycoon and I’ll post it here when i finish it. Maybe  I’m thinking to begin the block of Investment Through Internet with something about Forex or Stock Markets.

Related posts:

1. New Module on Economy And Business: The Interest Rate
2. Economy and Business, new block in The Web Tycoon.
3. Obama is cutting expenses, the budget of 2011 will be up to $3870Bn
4. According the European Central Bank, economy runs better than expected