{text:bookmark-start} Article Analysis Paper {text:bookmark-end} Introduction: When the thought of economics comes to mind people think of money, this is true but not entirely. In this term paper economics and microeconomics will be defined to better understand why money is not the source. Along with these subjects you will also come across the law of supply and the law of demand and define them as well to acquaint ourselves with their significance in economics. Economics: Colander: Economics, Seventh Edition; Thinking like an Economist Ch.1, also states “people do what is in their best interest financially-and it assumes that people rely on a cost/benefit analysis to make decisions.” They used the example of a drug dealer living with his mother but making less than a minimum wage employee, in which can be true. Economics is also being smart about managing your wants and needs, though drug dealers are only making a small dollar a day they are in it for the long run for sooner than later they can be CEO’s of a small business. Economics is the needs and wants of the people and knowing how to manage them. Microeconomics: Law of Supply: In the Economics Seventh Edition book, they give the example of the occurrence of a drought. The drought hit, therefore there is a smaller supply where you will be able to see on the chart how the supply has dropped and the price was raised. There are four other factors that may cause a shift under the law of supply: price of inputs, technology, expectations taxes and subsidies. The Law of Supply is simple, if there are plenty of products there is supply and prices are low. If there is a shift in supply prices go up and the supply of products goes down. Law of Demand: Just like supply has ...