World Recession and Inflation Microeconomic Issues
effects of price and cost rise people and businesses have to change their economic behavior. The market demand and supply suffer because people no longer demand as much as they used to demand. This is especially, the case when they are not willing to supply goods and services at the current market rates because of the high costs of production they have incurred, or they would incur if they were to supply at the market price.
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Posner, Richard A. Economic Analysis Vol. 5. New York: Aspen Law & Business, 1998.
Washington, Rowe. “How Does Inflation Matter?” The Economist, 23 Apr. 2013. Web. 30 May 2013.