Economics Assignment Help in India
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The following sample question solved by our economics assignment writing expert
should explain why?
Question: “Economic models are false and so government should ignore their
predictions.”
Explain, discuss and evaluate the accuracy of this statement.
Answer: (Please note this is only a part of the entire answer, in order to
provide students a
brief idea of our high-quality assignments.)
The statement that, “Economic models are false” is not correct on the first place.
Economic models
are rather simplification of the real world happenings which are all around us. The
basic model of
demand and supply which is one of the basic models of economics tells us that the
quantity demanded
of a product is negatively/ inversely related to its price and the quantity supplied
of a commodity
is directly/positively related to its price and that these two curves of demand and
supply intersect
in the market to give the equilibrium price and equilibrium quantity sold at the
market. This
economic model of demand and supply affecting the equilibrium price and quantity is
determined by
two laws –law of demand and law of supply (McTaggart, Findlay, Parkin, 2009).
These laws basically hold good for almost all the commodities in the market. However
the assumptions
made about the law of demand and the law of supply – that other things are remaining
constant has to
be true in order to make the laws hold good. For example the law of demand, states
that the quantity
demanded of a product or good is negatively/inversely related to its price – other
things remaining
constant.