Micro-Reflection Paper

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 Market Demand
This is achieved by summing all the demands of each individual in the market,
particularly for a certain product. It, therefore, means that for one to obtain market demand,
one must first know the individual demand, which is the consumers' ability and willingness to
buy a specific product or how much they want. Knowing many individual demands places
one in a better position to know the market demand. Let's say; for instance, we know the
individual demand of Tomiko and some of his colleagues in the market selling a certain
product that costs $18. His three friends have 3, 4, and 9, respectively, showing how their
demands were within that month. To know the market demand, we should add those
quantities to 6 because that is what Tomiko had to get twenty-two. When the price is at
eighteen dollars, the market or total quantity demanded is twenty-two cases. However, if the
prices reach $22 after an increase, there will be a drop in demanded quantity since there will
be fewer people buying the product at a higher price. Several factors determine the market
demand, including the number of individuals who are searching for the product in the market,
the amount they want to purchase the item, and the product quantity available to the
consumer; from both sides, the producing organization and its competitors. The whole
demand curve may sometimes shift. When a specific product in the market is preferred and
wanted/needed by many people, the price typically goes higher and is said to be a market
demand. More customers need the product and are willing to cash out any amount to pay for
the item. However, with a decrease in market demand, prices typically follow suit. The
significance of market demand is that companies use it as a tool because it quantifies people's
product desire at a specific price point. Every business that accounts for market demand
stands in a better place to make profits because of a satisfying and appropriate inventory to
maximize profits and satisfy people's needs. The market demand concept was fundamental
because I accounted for it and used it to understand everything regarding my clothes. Due to
this, I understood the kind of product they wanted, and the clothes I introduced into the
market were exactly addressing the needs of the consumers.
Subsidy
Subsidies refer to the financial aid that is given to business institutions by the
government. They may also be given to individuals to purposely promote government social
and economic policy. Subsidies are typically given by the government to eliminate some
burdens and are mostly considered to be in the people's general interest and are given with
the aim of economic policies and promoting social. Generally, subsidies are viewed as
privileges of financial aid because they lessen a burden associated with the problem that
individuals previously had. The government, for instance, has several subsidy types that they
give. The most known subsidies are welfare payments and individual subsidies, while
unemployment benefits are from groups of people. Subsidies that the government gives to
businesses are purposely intended to support industries that are financially struggling against
the competition in the international markets with lower prices, making the domestic business
appear that it cannot continue and make the organization profitable. Historically. The United
States' vast subsidies are primarily directed to financial institutions, agriculture, utility
organizations, and oil companies. In North America and Europe, several agricultural
producers of meat, grain, eggs, and milk are mostly given this type of support by their
governments. Additionally, the mining, gas, oil, and forest industries are heavily subsidized
by the government in Canada. If, for instance, the government subsidizes a dozen of eggs that
is at an equilibrium cost of $2, and the farmer receives one dollar for every dozen, they will
have to receive three dollars, and this would make the price of eggs drop.