Trends and Consumptions Paper
University of PhoenixTodays business world has seen a tremendous growth. The changes over the last decade have surpassed any growth rate in the past. The telecommunication industries have seen a fast growth that has affected the industry as a whole. The demand for new technology in the communication field has quadrupled over the years. This trend will continue to expand over the coming years that will increase the demand. This paper will explain the difference between economics and microeconomics and how the demands will grow. An analysis of the spending trend patterns will include the utility that is established by the demand changes, products, elasticity of demand, and prices.
Colander (2008) states that economics is the decision making skills that individuals possess to determine what the needs and wants are depending on the standards, norms, and processes. Determining what how to distribute limited resources is also a problem of economics. Trends tend to give hints to the economical predictions but are usually hypothetical. A goal of economics is to understand the pros and cons of employment, money, and values. Economics also evaluates current situations, conditions, and trends within either a certain area or other country (Colander, 2008). Microeconomics is a study of how individuals, households, and organizations make decisions based on the resources. Microeconomics is usually used in markets where goods or services are being bought and sold and deals with the functioning of the economy as an individual (Colander, 2008).
Law of supply is the determination between the price of a product and the quantity available at the stated price. Law of demand is the price and quantity in demand through a market that is unrelated. When the price of a product is increased the consumers will be less likely purchase the product. Competition can lead to the changes...