Economics: Efficient Household Device (Essay Sample)

Efficient Household Device
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Efficient Household Device
The economy of any nation depends on so many factors. These factors determine the forces of demand and supply in the economy. The prevailing economic situation at any given period determines the level of demand and supply at tat given period. During inflationary periods when prices of goods are high, supply is high as investors make huge profits. However, the situation is burdensome to consumers and reduces the level of aggregate demand in the economy. During deflationary periods when prices are very low, demand may be high relative to supply, depending on other conditions. Producers have little incentives to produce as they make less profit. Consumers have needs and wants. Needs are necessities for survival and must be met. Before a consumer can demand luxuries and other wants, they have to meet their needs first. Investment for future security is a dream of every household. Investments are made from savings. It becomes very difficult for households to save in an economy where the price of consumer goods is high and therefore the greatest portion of the income is diverted to consumption. Invention of a device that can produce consumables at a low cost can have immense effects on the e...