Economics Article Discussion

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

The article selected is US ECONOMY STRUTTERS Available at: http://business.smh.com.au/business/us-economy-stutters-20080830-45uq.html?page=1

If we define economics, it is the study of how people choose to use resources. It has been defined as a science that studies human behavior as a relationship between given ends and scarce means. It is the study of how societies use inadequate resources to produce valuable commodities and distribute them (1). .

Microeconomics is the study of individual parts of the economy, the household and the firm. It is also the study of effect of prices on output, distribution and use of goods and services and the manner in which prices are determined. It also refers to the study of the economic behavior of the individual consumer, firm and industries and way in which production and income is spread among consumers (2).

Law of supply mentions that the quantity supplied is related to price, the greater the price of goods or service, the higher the quantity that the business will sell, all else held constant. In other words there is a direct relationship between the quantity supplied of a product and the prices available for it. If the price increases the producers will supply a larger quantity at higher prices than at lower prices (3).

Law of demand says that as the price of a produce increases, the quantity demanded of the decreases. In other words, the quantity demanded ...