Please help me with these definitions.
a. Define economics
b. Define microeconomics
c. Define the Law of supply
d. Define the Law of demand
e. Identify the factors that lead to a change in supply and a change in demand
Analyze the basis for the trends in consumption patterns as discussed in the article. In your analysis, consider the utility derived from the products mentioned in the article, describe what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
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//The mentioned query has several points which are related with economics. To start with, point to point explanation of economics, microeconomics, law of supply, law of demand and factors affecting supply and demand should be provided. I am providing you an overview on these points which you can modify, as per your requirements. The first point is describing economics. For example: //
Economics: Economics is related to the optimum utilization of resources. It is concerned with the ways in which resources are allocated among alternative uses to satisfy human wants. According to the common practice, economic analysis is divided into two branches, one microeconomics and other macroeconomics. Both microeconomics and macroeconomics are essential for business policy formulation and business decision making (Mathur, 2000).
//After having given an idea about economics in the previous paragraph; moving further, I would now like to provide an understanding of other points of this question. //
Microeconomics: Microeconomics is the study of those economic variables, which are of individual nature. It is concerned with individual decision units like consumer households, which are resource owners and business firms, which are owners of goods and services. Their circular interaction determines commodity pricing and factor pricing. It deals with the relationship among the consumer and the supplier depending upon the various fluctuations in the market. Microeconomics is synonymous with price theory, theory of value, price system and resource allocation and principles of economics. The usefulness of microeconomics lies in solving the problems in the real world. The scope of microeconomics involves:
Optimum production decisions: business firms constantly face the problem of choosing among the various alternatives regarding production. Microeconomics serves as the basis for and is helpful in promoting an understanding of modern tools of managerial decision making that help to solve basic economic problems. These tools are applicable to business as well as government.
Optimal resource allocation: some of the most significant applications of microeconomics are in the area of allocative efficiency. The concept of pareto optimality lies in making some people better off without making others worse off. If the restructuring in allocation of resources fulfill this Pareto optimality condition, it is assumed that there is efficiency ...
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