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Consumption concepts

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1.What might trigger an abrupt decline in consumer spending?

2.Identify and list all factors that impact the level of consumption.

3.Choose one factor of consumption and describe what would be the impact on the whole economy if that factor of consumption had declined.

4.Find an article on decreased consumer spending, list the name of the article and provide the link to it.

5.Quote a statement from your article that clearly supports the answer-statement provided in (3).

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Aggregate Demand and Supply

1.What might trigger an abrupt decline in consumer spending?

Decline in consumer spending can be traced to increase in the prices of commodities and services.
If price is high, consumers will be discouraged to buy more.

This results during recession where there is widespread displacement of workers. Layoff results to less or no income for workers. A reduced income results to decline in consumption of goods and services.

2. Identify and list all factors that impact the level of consumption.

Factors that impact the level of consumption:

a. Prices. If prices are high then consumption will be low because consuming will use up a higher percentage of a person's income.

b. Inflation. If inflation is low but is rising, then people will want to buy more earlier, so that they get it for a cheaper price as opposed to having to pay for it when inflation is higher. The same applies but reversed when ...

Solution Summary

This solution discusses the causes of an abrupt decline in consumer spending, and the factors that impact the level of consumption.

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Economic Concepts and Trends in Consumption Patterns

Using the Internet, and/or other sources of literature, locate an article concerning trends in consumption patterns. Prepare a 1,050-1,400-word paper in which you:

- Define Economics
- Define Microeconomics
- Define Law of Supply
- Define Law of Demand
- 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. Cite your references appropriately. If you used an electronic source, include the URL. Format your paper according to APA standards. Make sure all aspects are covered in the paper.

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