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Eco365 Article Analysis

In: Business and Management

Submitted By abuell
Words 1078
Pages 5
Week One Article Analysis
January 16, 2012

Week One Article Analysis
David Colander defines economics as "the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (Colander, 2010, p. 4). Coordination in this definition refers to production content, method, recipients, and even quantity. To think like an economist one must analyze every situation by comparing the costs and benefits and make any decisions based on those findings (Colander, 2010). The study of microeconomics zeroes in on the individual and analyzes how economic forces affect the choices he or she makes.
Economic forces will ensure that what people want and will pay to get will match what is available. This is the concept of supply and demand. If the prices are such that people are not willing to pay it to obtain an item or service, they will choose to buy less of it, not buy it, or buy a substitute. This is the working of the law of demand. The price affects both supply and demand. When prices increase, the demand decreases, and when prices decrease, the demand increases. In the law of supply, however, if prices increase, individuals and companies will increase the supply because the opportunity cost of not producing the product rises with the price (Colander, 2010). There are factors other than price that can lead to changes in supply as well as changes in demand. These could be government policies, taxes, income, social norms or expectations, political forces, tastes, and prices of other goods, to name a few.
Four Steady Trends
In the Harvard Business Review, Beinhocker, Davis, and Mendoca discuss 10 trends emerging in this economy. They consist of four trends that are steady, five that are accelerating, and one that is decelerating (Beinhocker, Davis, & Mendonca,...

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...Week I Individual Assignment University of Phoenix This paper is written in response to the University of Phoenix Eco365 class. In this paper I will define economics, microeconomics, the Law of supply and demand and I will also identify the factors that lead to changes in supply and demand. The business world is very susceptible to the nuances of consumer choices. The ability to anticipate the trends in consumer consumption patterns is vital any company who seeks to be a leader or major player in their field. Constant research and analysis is performed each year to determine or create the trends not only in who are the company’s current customers but future customers as well. This research is also used to determine what those customers want and why. To really understand trends in consumption patterns, you have to first understand the basic principles of economics. Economics Economics is the science that studies the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems (Colander). One example of economics is the new job tax credit that President Obama has proposed. This credit encourages businesses to expand their workforces and operations by offering $3,000 for each new job that a company creates and places someone in, thereby increasing production of products with the intent to lure consumers to spending more. Microeconomics Microeconomics is the study of the operations of the......

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