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Posted: November 30th, 2021
Thomas Sowell said, “The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it…” In this paper the author will define economics, microeconomics, macroeconomics, the law of supply and demand and will identify the factors that lead to a change in supply and demand. The author will also analyze the basis for the trends in consumption patterns as discussed in the article “Alcoholic Beverage Consumption in the U. S. : Patterns and Trends.
Economics Defined According to our text, “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, 2008 - Affordable Custom Essay Writing Service | Write My Essay from Pro Writers). Economics can be simply defined as the study of production, allocation and consumption of goods and services. There are generally three central problems that an economy must solve, they are: what, and how much to produce, how to produce it, and for whom to produce it.
This paper will discuss microeconomics, the law of supply and demand, and the factors that lead to a change in supply and demand. Micro and Macroeconomics Economics is important and used in all facets of life. There are many issues across the world that are based on economic aspects, especially when making decisions that involve profit sharing, income allocation, minimizing unemployment, and price gauging.
Some businesses will use economics to drive prices and determining on purchases or investments. Microeconomics is “The study of individual choice, and how that choice is influenced by economic forces” or also known as the invisible hand theory. Decisions that are based on microeconomics are typically motivated by costs; those costs can be of financial costs which include average fixed or total variable. Macroeconomics is the study of the economy as a...
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