APPLIED ECONOMICS

APPLIED ECONOMICS
APPLIED ECONOMICS
APPLIED ECONOMICS
APPLIED ECONOMICS
 FACTOR #1

EMPLOYMENT

HOW DOES THE FIRST FACTOR

ULTIMATELY CONTRIBUTE TO THE
INCREASE IN COMMODITY PRICING?
The small open economy
has a real appreciation when
commodity prices rise, and unemployment declines
even though there is a little employment in the sector
that produces the commodities, consequences impact
various groups in varying ways. Unemployment
disproportionately affects people of color, young
people, the elderly, and women. This is common
knowledge and a fact.
 FACTOR #2

POPULATION

HOW DOES THE SECOND FACTOR

ULTIMATELY CONTRIBUTE TO THE
INCREASE IN COMMODITY PRICING?
The median wage and the salary structure also
have a role in mediating
the effects of population.
Both population and consumption trends occur
gradually. Since change is happening gradually,
there is time to modify production and
distribution in order to stabilize the supply on the
market. Controlling price hikes and inflation will
support societal harmony, economic
development, and the advancement of China's
socialist market economy. Profits won't rise
despite higher investments, labor costs, and fixed
assets. Installation cost are high as a result of the
state monopoly due to the vast user base and low
supply elasticity.
 FACTOR #3

WAGES

HOW DOES THE THIRD FACTOR

ULTIMATELY CONTRIBUTE TO THE
INCREASE IN COMMODITY PRICING?
The demand for goods rises as a result of
consumers having more
purchasing power due to
an increase in money supply. However, as the cost
of goods and services rises overall in the market
and at business paying higher wages, the wage
increase is less beneficial to employees because
the cost of goods has also increased. Workers will
soon need another pay raise to cover the rising
cost living if prices continue to rise. Future worth
of current currency is diminished by inflation. The
value of a dollar is lower than it will be in the
future due to rising prices. Money is always worth
more now than it will be in the future, especially
given its investment potential.