Elasticity Scenario
The world today is not what was knew. Today people live in constant change. It is impossible to stop the quick development, so is necessary that people adapt and change easily. A key factor for this to be possible is the economy. Therefore this is an important issue to know. Economics biggest challenge is to make diverse types of data analysis develop ways to handle world biggest issue, this is the constant demand for goods and services and scarcity of resources to produce to fulfill those needs. It is known and recognized that there is a scarcity of resources which mean that those in charge of produce goods and services are limited or restricted, so there is where the economic is helpful in exploring ways to allocate correctly the scarce resources.
Scarcity of resources causes what is known as the economizing problem. This problems comes from the issue that society’s consumer constantly are demanding for goods and services which have to be produced with resource scarcity. That is why business need to make decisions about what is the best way to allocate their resources to produce goods effectively. Economist handle the economizing problem through analysis. Those analysis help them to find possible combinations of goods and services production that can be produced. What is important about this is that it seek to find the best way to use efficiently resources that are limited, and at the same time meet the unlimited demands of society. It analyze what is wanted and what is needed to produce it to find the best production choice. Is important to take into count that economic growth will only be possible if resources are used properly and efficiently.
In order to make the right decisions about what resources to use and what to produce with them, economist used models known as economics models. These models purpose or utility is that the gives them a way to practically organize data. In economics the cause and effect chains...