Eco 365 Week 1 Individual Article Analysis

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Week 1 Individual Analysis Week 1 Individual Article Analysis Rebecca Mouser ECO/365 Principles of Microeconomics May 13, 2013 Instructor Peggy Douglas Week 1 Individual Article Analysis “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, What Economics Is, 2010). “In the study of economics, coordination refers to how the three central problems facing any economy are solved. The Three central coordination problems any economy must solve are what to produce, how to produce it, and for whom to produce it” (Colander, What Economics Is, 2010). “Economic theory is divided…show more content…
If other things change, then one cannot directly apply supply/demand analysis. Sometimes supply and demand are interconnected, making it impossible to hold other things constant (Colander, The Limitation of Supply/Demand Analysis, 2010). “In supply/demand analysis, you would look at the effect that fall would have on workers’ decisions to supply labor, and on business’s decision to hire workers. However, there are also other effects (Colander, The Limitation of Supply/Demand Analysis, 2010). “For instance, the fall in the wage lowers people’s income and thereby reduces demand. That reduction may feed back to firms and reduce the demand for their goods, which might reduce the firms’ demand for workers” (Colander, The Limitation of Supply/Demand Analysis, 2010). “If these effects do occur, and are important enough to affect the result, they have to be added for the analysis to be complete. A complete analysis always includes the relevant feedback effects” (Colander, The Limitation of Supply/Demand Analysis,…show more content…
“Over the past few decades, the food and home environments have changed tremendously. Environmental influences that affect eating behaviors include the changing nature of the food supply; increased reliance on foods consumed away from home; food advertising, marketing, and promotion; and food prices” (St-Onge, Keller, & Heymefield, 2013). Obese children are affecting the world of microeconomics. Microeconomics is solely dependent on how much and what is consumed by individuals. With many children experiencing obesity, the economy markets are affected because the way children are forced to change the way they eat. Some companies will benefit from the change whereas others will suffer a loss. When the demand for a certain product rises because obese children have to change his or her way of eating it affects the market of supply. Affecting the market of supply lowers the consumption of certain products and raises the demand for healthier food items. This also causes a change in the sales of clothes as children losses more weight, affecting more than one demand and supply

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