Article Analysis

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Article Analysis ECO/365 As consumers, workers, producers, investors, and citizens economics affects the lives of people daily. Economics has an effect on one’s life from finding a job to obtaining a budgeted salary. This paper covers a few areas; economics, microeconomics, the Law of supply, and the Law of demand. Factors that lead to a change in supply and a change in demand are identified in addition to an analyst on the trends in consumption patterns of natural gas. Economics “Economics is 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). Economics is a social science concerning description and analysis of the production, distribution, and consumption of goods and services. Economic contains theories, principles, and practices. Economics can be broken down into two categories; macroeconomics and microeconomics. Macroeconomics focuses on the economy while microeconomics focuses on individual. (This paper only covers microeconomics.) Microeconomics “Microeconomics is the study of individual choice, and how that choice is influenced by economic forces,” (Colander, 2010, p. 15). The study of microeconomics covers such things as how a company prices products, how individuals budget money, how one spends his or her money, and how one decides to buy certain products. Microeconomics focuses on individual consumers and corporations. This focus includes patterns of supply and demand the affect the price of a product, for example, natural gas. The Law of Supply “The law of supply states: Quantity supplied rises as price rise, other things constant. Or alternatively: Quantity supplied falls as price falls, other things constant. Price determines quantity supplied just as it determines quantity demanded,”

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