MICRO ECONOMICS

Contents

About the market transaction...........................................................................................................4

Reason for creating the service........................................................................................................4

Demand of the service.....................................................................................................................5

Factors influencing the price of the service.....................................................................................6

Elastic or inelastic pricing...............................................................................................................8

Conclusion.......................................................................................................................................8

Reference.........................................................................................................................................9
About the market transaction

The whole business world is dependent on market transactions. Change of goods, information,

service, currency or combination of more than above stated factors are responsible for the same.

So, in this report I will be analyzing one of the latest transactions that I have done. I have taken

services from a freelance writer for my mother’s business website. The website is quite new and

therefore, needed some organic traffic and therefore, we need some SEO optimized contents for

the website. The writer that I have worked with has made some reasonable charges, according to

the Indian market. And after some negotiations we collaborated professionally and made the

work done.

From a microeconomic point of view, each of the decisions that made by individuals while

having market transactions are important. It evaluates a business and determines its impact on

economy in individual or firm level; therefore focuses on minute details.

Reason for creating the service

By creating engaging content, you can establish a connection with your readers and keep them

interested in reading more. Never undervalue the power of well-written content since it may have

a significant impact on the whole campaign (Xu, 2021). The greatest marketing communication

firms claim that content creation can make or break a brand, thus businesses put more work into

it.

To like the products, people must have time and awareness. The process of pushing business

ideas takes time. Get the public on the side and let them learn more and more about what one is

offering (Balgopal et al., 2018). One may greatly aid in the process by creating engaging content
and then posting it on numerous platforms for the desired consumers, using the website, blog

panel, newsletters, and social media accounts to provide well-written, interesting, and practical

material related to the business (Tong et al., 2020). Potential clients will see the information,

which will provide the impression that the business is present in the market (Van der Auweraer

and Boute, 2019). Brand recognition may be developed at a good speed by being consistent in

the authoring and publication of content.

The marketing's search engine optimization seems handicapped without content. Consistency in

well-written content with creative (and often searched) keywords is crucial for Search Engine

Optimization and improving a brand's Google rankings (Grapin and Llosa, 2020). When a video

is accompanied by textual information, its ranking rises. Using keywords in a script or a

YouTube description will help with SEO (Grapin and Llosa, 2020). Content writing establishes a

brand and improves overall SEO for anything from banners to infographics to emailers.

Regularly discussing one's industry while offering news, trends, and ideas makes a favourable

effect on the audience. Being engaged in the industry and presenting certain business ideas in

many formats and on numerous platforms is made possible by content writing (Noroozi et al.,

2020). Regular content posting informs visitors of the company's mission. It explains to them

what one does and how he might assist them (Noroozi et al., 2020). This increases people's

interest in the company.

Demand of the service

Schools, colleges, and institutions now use online learning since COVID is a burden in the

normal course of things. The availability of knowledge and technology at the touch of a button is

exactly what powers the world as we know it today (Van der Auweraer and Boute, 2019). Every
piece of information that people seek has been skillfully and meticulously presented in order to

make it interesting, understandable, and valuable. Content writers specialise in this particular

trade of making the reader or viewer experience engaging and satisfying (Woolley and Sharif,

2021). In 2022, there will be even more of a demand for academic writers in the content writing

sector (Woolley and Sharif, 2021). An insightful comprehension of the topic is one of the

essential qualities of an academic writer.

Writing for content serves as the cornerstone of any type of marketing since it is the base upon

which every company establishes its reputation. Simply said, content writing is the specialised

practise of producing written text, videos, or images for internet use (Hughes et al., 2019). To

promote tshe goal of promoting their product or service, companies and organisations pay

content writers to provide high-quality material in the form of blog entries, social media

postings, articles, and advertisement text (Miller et al., 2018). While some content writers are

experts in a certain specialty, others may be skilled in all areas of writing. A content writer's

responsibility is to provide information that is pertinent, interesting, and simple to grasp in order

to increase leads and, eventually, revenue (Grapin and Llosa, 2020).

Factors influencing the price of the service

Pricing is considered as the most important element throughout the world in the field of business.

Setting the price of any product or service adds value to that. The buyer taking the product and

service, and the seller giving it away in exchange for some bearing when they buy or sell it (Lei

et al., 2020). In a similar manner, the consumer pays the seller to purchase the "value" of the

goods, and the seller sells the thing to recover the "value" of the money spent on it (Lee et al.,

2019).
The pricing policy is determined at two levels of management: the top managers decide on the

price range, while the lower-level employees set the specific price (Lee et al., 2019). The

marketing mix must match the price in order for it to be implemented; otherwise, people won't be

drawn to the price. The marketing mix must uphold the norm for the product's pricing in order to

be considered decisive for the price range set. Since it is rare to discover an original product on

the market today, the product's nature, features, and characteristics serve as its primary points of

difference. The additional attributes, such as quality, effectiveness, and usefulness, all compel

buyers to spend more (Lee et al., 2019).

The pricing has no influence over outside circumstances. These elements have a consistent

impact on the whole industrial group (Hong et al., 2019). The market trend is predicted in order

to achieve this. If the demand of a product or service is highly elastic, a lower price must be set

(Hong et al., 2019). Price increases are possible while demand is higher and supply is stable, but

price reductions are necessary to maintain competitiveness when demand declines (Hong et al.,

2019). The product's quality must be preserved while maintaining price competition. In contrast,

regardless of the extent of competition in a monopolistic market, prices are established. As a

result, the producer tries to guess the pricing of his competition. When the price of the extras is

high, customers will buy the manufacturer's goods (Papazoglou et al., 2020).

The price of the product may be reasonable if supplies are adequate and convenient access to raw

materials is possible. When the cost of supplying raw resources rises, so do prices. Price

reductions during a recession ensure that purchases will be simple (Papazoglou et al., 2020).

Prices increase dramatically during boom times because businesses may now turn a profit.
Elastic or inelastic pricing

The term elastic demand determines how the product consumption is changes by change in the

pricing of the service or product. Many researchers and economic experts analyze the concept of

elastic and inelastic pricing to understand the impact of product’s demand and supply. If the

value of price elasticity is more than 1 then it can be said that the good is an elastic one. If the

value is less than 1, then the good can be termed as inelastic (Lee et al., 2019). Now, if the price

elasticity is around 0, then amount of price will not fluctuate with the change of demand

(Papazoglou et al., 2020). If the price elasticity is exactly 1, it is referred to as unitary elasticity

(price causes an equal proportion change in demand) (Lee et al., 2019). If a substitute product is

available it changes the product’s flexibility as well. If the product is essential and there are no

viable alternatives, the demand is inelastic and won't change when the price rises. Therefore, the

article writing service in this instance is flexible.

Conclusion

In conclusion, market transactions are essential to all aspects of business. Changes in the above-

mentioned elements or in the commodities, information, services, or currencies themselves are to

blame. Therefore, I reviewed one of my most recent trades in this report. For the website of my

mother's company, I hired a freelance writer. The website is very new, thus it needs some

organic traffic, which means we need to provide articles that are SEO-friendly. Further, the

report also highlights the factors that create the demand in the market and the factors that impacts

the pricing of the service.

Reference

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matter?. Interactive Learning Environments, 28(6), pp.698-712.

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Xu, X., 2021. What are customers commenting on, and how is their satisfaction affected?

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