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What is the connection of Business and Economics?


Economics can be defined as=
The Branch of Science which deals with the factors that helps to explain the production, consumption, distribution of commodities and transfer of wealth within the country is known as the economy of that country. Whereas

Business can be defined as=
Any legal activity which is done for the purpose of earning profit is called business, it can be regular or irregular depending upon the nature of the business. Some businesses are regular which perform operations throughout the whole year and some are seasonal which ends with the season.

Connection of Business and Economics=
Moving towards the explanation of what is the connection between Business and Economics:
As we discussed above about the Economics and Business through which we can imagine a slightly difference between them however we do need its further explanation i.e.
Economics is how general public of any country select their resources in order to fulfill their unlimited wants and Business is legal activity done for profit.
We can say Economics is not as same as Business, However it relates with business in many ways. For Example:
  • Price Elasticity of Demand (i.e. used to set prices for various items.)
  • Factors that changes Demand (i.e. Customer choice, taste, need.)
  • Fixed cost and Variable cost (i.e. used to make decisions.)
All the above points are considered necessary parts of business operations,planning and development and according to these we can say there is some relation between economics and business.

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