Micro economics extra credit Coursework Example | Topics and Well Written Essays - 750 words

Micro economics extra credit - Coursework Example There are various concepts that explain microeconomics in the case of Mr Shea, who faced an eviction notice after renting his terrace to a visitor who turned out to be a private investigator (OTTERMAN page 1-2). Consumer protection This concept refers to the assurance of quality and safety in the products the consumers purchase and consume. Trusting the producers makes the economy flourish. In the case of Mr Shea, he provides room for visitors at cheap prices and there is no assurance of protection and safety (OTTERMAN page 1-2). When one of the visitors arrives , Mr Shea smuggles the visitors’ language using a laundry cart to avoid attention from the neighbors or the co-op board (OTTERMAN page 1-2). He goes to the extent of asking the visitor to identify himself as a friend to Mr Shea in case anyone asked. The internet communication from the visitors to private hosts is not an assurance of safety since some of the hosts may take advantage of the situation to make money out of the visitors (OTTERMAN page 1-2) Demand Demand refers to the extent at which a good or service is needed in the market. Demand not only refers to the quantity but also to the demand curve of a product. This traces the degree at which a good or service is demanded at different prices. ... This was to ensure to the quality of the rooms thus attract many visitors (OTTERMAN page 1-2). Profits Profits refer to the earning of returns by the capitalists through their efforts in the provision of their inputs. The capitalists are willing to go through denial of self gratification to invest some of their resources in fruitful activities (OTTERMAN page 1-2). Profits occur as a result of taking risks by different investors. The investments yield profits while others don’t. David Shea and the co-op board of affordable development rent out terrace to earn profits (OTTERMAN page 1-2). Mr Shea estimated a reasonable number of fifty visitors between 2011 and 2012 making an income of $6,000 which served as his profits because there was no taxation. Mr Shea goes against the rules of the co-op board which prohibits sub renting for profits even though David Shea says he was unaware of the rule (OTTERMAN page 1-2). Receiving anything of value from the invitee, occupant or the guest in exchange of habitation, whether it is permanent or temporary is not curable since it is fraud and profiteering. . Hosts present for the visitors added up to fifteen thousand thus losing millions in the hotel occupancy taxes (OTTERMAN page 1-2). Producers A producer refers to a person creating and supplying goods or services to potential consumers (OTTERMAN page 1-2). The producers combine the labor and capital which are factors of production. When a producer offers their services to the consumers, they get a reward, in this case a profit. Mr Shea offers services to his guests through the renting of terrace to guests at affordable prices (OTTERMAN page 1-2). The idea of renting came about when a therapist suggested to David