In microeconomics, demand and supply is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium for price and quantity, let us discuss this in some details.

Market demand

Demand for a good or service is defined as quantities that people are ready (willing and able) to buy at various prices within some given time period, other factors besides price are held constant.

Market demand is the sum of all the individual demands

Example: demand for pizza

Law of Demand is the inverse relationship between price and the quantity demanded of a good or service, in other words, as the price of a product increases, quantity demanded lowers; likewise, as the price of a product decreases, quantity demanded increases.

Changes in price result in changes in the quantity demanded, this is shown as movement along the demand curve.

Changes in non-price factors like income, future expectations and tastes and preferences result in changes in demand, this is shown as a shift in the demand curve.

Market Supply

The supply of a good or service is defined as quantities that people are ready to sell at various prices within some given time period, other factors besides price held constant.

Changes in price result in changes in the quantity supplied shown as movement along the supply curve

Changes in non-price determinants like costs and technology, future expectations and number of sellers result in changes in supply, shown as a shift in the supply curve.

Market equilibrium

Equilibrium price (P₁) is the price that equates the quantity demanded with the quantity supplied

Equilibrium quantity (Q₁) is the amount that people are willing to buy and sellers are willing to offer at the equilibrium price level

Shortage is a market situation in which the quantity demanded exceeds the quantity supplied, shortage occurs at a price below the equilibrium level

Surplus is a market situation in which the quantity supplied exceeds the quantity demanded, surplus occurs at a price above the equilibrium level

A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. Relevant financial information is presented in a structured manner and in an easy to understand form, through this post we will go through some of the financial statements and the usage of each one.

1-Balance sheet

Balance sheet (also called the statement of financial position), and it describes where the enterprise stands at a specific point of time. The balance sheet list all the enterprise assets, liabilities and owners’ equity.

• Assets are economic resources that are owned by the business and are expected to benefit future operations.
• Liabilities are debts that represent negative future cash flows for the enterprise.
• Owners’ equity represents the owners’ claims on the assets of the business.

At any point the assets should equal to the sum of the liabilities and owners’ equity, and we call this the accounting equation.

2-Income statement

The income statement provides the user with data about the profitability of the enterprise, detailing sources of revenue and the expenses which reduce profit, by analyzing the income statement you can determine the actions required to increase the profit and to reduce the expenses.

The bottom line of the income statement is called net income or profit. Net income is either retained by the firm for growth or paid out as dividends to the firm's owners (investors) depending on the company's dividend policy.

3- Cash Flow Statement

Cash flow statement (also called Statement of Cash flow), it is concerned with the flow of cash in and out of the business, and it breaks the analysis down to operating, investing, and financing activities.

• Operating activities include the cash effects of revenue and expense transactions.
• Investing activities include the cash effects of purchasing and selling assets.
• Financing activities include the cash effects of transactions with the owners and creditors.

It is very important for:

The Accounting personnel who need to know whether the organization will be able to cover payroll and other immediate expenses.

For Potential lenders or creditors who want a clear picture about a company's ability to repay depts.

And for Potential investors, who need to judge whether the company is financially sound or not.

Well, for most of us this question is very hard to answer and in order to answer correctly we need first to define what it means to be responsible.

Responsible people fulfill their obligations at home, at work, and toward the community. They recognize that they are accountable for their actions. So when they make a mistake, they admit it, apologize, and strive to make amends. Responsible people are always honest, dependable, helpful, fair, respectful and caring. Responsibility is present in every single action they take; it is their life style or in other words, it is a theme that they can’t leave behind at any time.

As we see responsibility might add lots of burdens on our shoulders, so what are we gaining in return? Many of us will ask: “Why should I be responsible?”

A responsible person gains a self-confidence which is the main key to success, enjoy a better life, enjoy people respect and trust and have a fruitful carrier path. A responsible person gains a recognition within his community and is treated as a leader, unlike the irresponsible person who is treated like a baby who can’t be away for an hour without checking in with Mom. The irresponsible is mainly treated as gear in a machine with no creativity or sense of achievement and all of his work is nothing more than a routine.

You have the right to choose which of them you want to be, but for your information it is something easy to learn and implement, you just have to take the first step and you will see enormous results of success, go on and you will learn how to set the base of being responsible.

First of all you should understand that responsibility is earned?

You have to prove yourself in the small tasks in order to be assigned to bigger ones, it is like a stair, you can’t reach its top without climbing each single step. You should start by yourself, you should be responsible for the tasks you assign to yourself. How many times you committed to go to the Gym and you didn’t, how many times you committed to read a book and you didn’t, and even more how many times you committed to spend the week end in a useful thing and ended up laying down on your bed till 5 pm. You have to be responsible for your daily actions in order to be a responsible person.

Stop making excuses:

The easiest way to convince yourself that a given task is not your responsibility is by making excuses, you always blame the external factors, “I didn’t do it because bla bla bla”, you are simply saying “I AM NOT RESPONSIBLE”, you feel comfortable when you do this because you don’t want to blame yourself, because in your sub-conscience the easiest way to solve a problem is to convince yourself that the problem has no resolution, but the truth is that if you really want to do something you will find a way to do it, if you don’t, you will find an excuse. Stop making excuses and start saying I am responsible.

Admit your mistakes:

From my own point of view this is the hardest one to implement as it requires self-confidence. you should know that all of us make mistakes, we are humans not angels, but the clever ones should learn from their mistakes not to make them again, how you can learn from your mistakes when you don’t even agree that they are mistakes, when you admit your mistakes you face yourself to truly know the root cause, mistakes are the portals of discovery, this is the only way you will learn and gain experience.

Conclusion:

Yes, responsibility matters, being responsible will help you to achieve your goals, fulfil your dreams and live a better life. All you have to do is to understand that responsibility is earned, you have to stop making excuses and finally admit your mistakes to learn from them.