Key microeconomic and macroeconomic factors that are likely to Essay

Key microeconomic and macroeconomic factors that are likely to mildew the price and output of that product over the next five years - sample Exampleare several key microeconomic and macroeconomic factors that have a heavy influence on the price and output of PhenomenEyes. In the course of this paper these factors will be further explored and explained. The factors that ingrain the individual will be looked upon under microeconomics and can range a time span of less(prenominal) than a year. Where as the factors that affect the entire economy and will last five years or more will be looked over under macroeconomics (Mankiw, 1998). In short macroeconomic factors are concern on things which affect the nation i.e. inflation, interest rate, unemployment, exports and imports, where as microeconomic factors consist of those that affect people on an individual level e.g., personal income, preferences, price of competitor products.To start with, microeconomic analysis aims to take a bette r look at how individuals and organizations work in any given economy, in our case this would be the economy of Australia. Here we look at the small scale issues and problems related to the decisions of prices and output for the PhenomenEyes. Prices here arte establish on individuals and how they would act and react to the market and the product. The output is directly linked to the demand that is being targeted. In this case, Givenchy is going after consumers who are interested in high end beauty products. The prices are establish on their preferences these individuals will most likely not be looking to invest in mascara that has a lower price tag on it because they associate money with quality. Similarly, because a relatively small measurement of consumers are being targeted their demand will come in small numbers as well, which message that the ware will not consist of a large scale massive operation. Demand the production is directly related here, the lower the demand the low er the number of units that will be produced and vice versa. The microeconomic analysis assumes that the consumers are acting with a proper rationale for all their