Today, the world of business is predisposed to the delicacy of the consumer impulse. A business, which craves the position as a top runner or key dynamic in its trade, must be able to foresee the trends in consumer consumption patterns. Many companies spend several million dollars every year in studies and research to generate or verify trends among present consumers of the company. The research and studies also aid in anticipating future customers along with his or her needs and wants. In order for a company to be on its way to becoming a leader, those involved must first be familiar with the basics of economics. This paper will first cover the definitions of Economics, Microeconomics and the Laws of Supply and Demand. Secondly, this paper will attempt to identify the factors that lead to a change in supply and a change in demand.
Lastly, this paper will focus on a particular article and attempt to analyze the basis for the trends in consumption patterns developed due to its goods or services.
There are several variations of the definition for Economics. According to the author of the required text for ECON 365 taught through facilitators at the University of Phoenix, Economics, 5e: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. One of the key words in the definition of the term "economics" is coordination. Coordination can mean many things. In the study of economics, coordination refers to how the three central problems facing any economy are solved. These central problems are: 1. What, and how much, to produce. 2. How to produce it. 3. For whom to produce it.
In other words, economics is , anticipating, analyzing and interpreting how people react. The...