Economics plays a vital role in the world today. Economics includes the supply and demand or products, such as goods and services provided to individuals and businesses by other individuals and businesses. The consumers are the ones that demand these goods and services, while those that are providing the goods and services must keep up with the demand by supplying the consumers with the goods or services. Supply and demand eventually shows consumption patterns of the consumers and the goods and services that are provided. Keeping this in mind, one must know the laws or supply and demand and the factors that may cause changes to the consumption pattern of the goods and services.
Economics, as defined by Colander, is the study of how human beings coordinate their wants and desires, given the decision-making mechanics, social customs, and political realities of the society. When studying economics, there is micro- and macroeconomics.
This paper will focus on microeconomics. Microeconomics is the study of individual choice, and how that choice is influenced by economic forces (Colander, 2008). This study includes the pricing policies of firms and a householdsÃÂ decision on what to buy. Using the information gathered, the studies can show the patterns in consumption between the consumers and the products. In a recent article titled Shifting Consumption Patterns-An Accelerating Trend, the author McKinsey points out that consumption patterns are shifting. McKinsey states that consumer spending has slowed drastically. Due to the Depression, consumption slowed and has yet to return to what it was before the Depression. Therefore, there is going to be a slower long-term growth before consumption reaches its peak once again. McKinsey believes that shifting the market to older consumers will allow an increase in demand. The older consumers have more experience, time, and motivation.
Due to the lower...