Microeconomics: Supply and Demand

Prices of Onion (Deshi and Indian) go up due to shortage of supply 1. Introduction microeconomic theory is perhaps the nearly important course in all economics and business programs. I am on the button trying to discuss more or less the role of theory or models in com/microeconomics-chapter-4/microeconomics, discuss the basic methodology of economics, and distinguish between positive and normative analysis. Our main target in this fitting is to write an essay about microeconomics related number which is published by the newspapers recently.After studying the newspaper I have got a microeconomic related topic which monetary values go up, as a result, demand will decrease. According to my previous study knowledge, I had some ideas about production court, import cost, transportation cost and separate 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 only production an d other ssimilar cost and profit but also supply and demand, changing situation, income and substitution effect, balance price, elasticity, cost behavior, market position etc..Here my selected product is Onions (Deshi and Indian). This is because onions 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 retailing at Tk. 45 a kg and Indian onion at Tk. 40 a kg over the last hebdomad due 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 s tudying the newspapers, I have make a microeconomic related topic that is, Onion, flour, vegetables, fish prices go up which is published by Financial Express on 15th December, 2012 and Prices of onions, green chili con carne skyrocket which is published by New Age on 22 December, 2012.So I have taken 2 commodity Deshi onion and Indian onion. For acquire more information I visited 2 markets which is nearest of my area due to know about the supply and current and previous price and demand for two types of onions. a) Nayabazar Market b) Babubazar Market 3. Demand 3. 1. Law of demand We know that, consumer purchase more products when the price is lower and they buy fewer products at higher price where other things remain the same. We also know that, there is an inverse relationship between price and quantity demended according to the law of demand.