What is happening to inflation in the US economy?
Economics as a subject deals with the allocation of scarce resources among humans with unlimited wants. For production, raw materials are used as inputs and processes through machinery using physical labour to convert into finished products. This is then taken to the market and buyers and sellers come to an exchange agreement at a particular price.
Since economics deals with the supply and demand of resources, Adam Smith, the father of economics, said that in a free market without any influence of external forces, the supply and demand for any good are equalised. All suppliers are able to sell their products and buyers are able to get what they want, at a particular price.
Step by step
Solved in 2 steps
