Americans are beginning to feel the tightness of their wallets due to rising food and fuel costs. This paper will discuss and define economics, microeconomics, law of supply, law of demand factors that can lead to a change in supply and demand. It will also analyze the basis for trends in consumption patterns and what are the benefits gained from the consumption of rice. Finally it will discuss the changes in market prices for rice.
“Economics is the study of how human beings coordinate their wants and desires, given
the decision-making mechanisms, social customs, and political realities of the society.”(C., Colander, David). Economics is based on what you want, how to produce it, and who will produce it. Americans are known for being consumers. Most Americans have more than one car, television, or computer. A large demand for the amount of things that an American wants will cause certain items or commodities to become scarce. This scarcity of products can also dictate the price he or she will pay for the item or commodity.
“Microeconomics as the study of individual choice, and how that choice is influenced by
economic forces.”(C., Colander, David). Microeconomics is the study of the prices of certain items or commodity, what he or she wants to buy, and how companies come up with the money to produce the goods that people want. Since many Americans are feeling the rising cost of these items or commodities they are now curbing their spending habits and not making purchases for high priced products such as televisions, cars, or vacations and instead now saving their money in order to buy food and fuel.
“The law of supply states: Quantity supplied rises as price rises, other things constant or alternatively: Quantity supplied falls as price fall ...