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Week I Individual Assignment
University of Phoenix

This paper is written in response to the University of Phoenix Eco365 class. In this paper I will define economics, microeconomics, the Law of supply and demand and I will also identify the factors that lead to changes in supply and demand.
The business world is very susceptible to the nuances of consumer choices. The ability to anticipate the trends in consumer consumption patterns is vital any company who seeks to be a leader or major player in their field. Constant research and analysis is performed each year to determine or create the trends not only in who are the company’s current customers but future customers as well. This research is also used to determine what those customers want and why. To really understand trends in consumption patterns, you have to first understand the basic principles of economics.
Economics
Economics is the science that studies the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems (Colander). One example of economics is the new job tax credit that President Obama has proposed. This credit encourages businesses to expand their workforces and operations by offering $3,000 for each new job that a company creates and places someone in, thereby increasing production of products with the intent to lure consumers to spending more.
Microeconomics
Microeconomics is the study of the operations of the components of a national economy, such as individual firms, households, and consumers in relation to supply and demand (American Heritage Dictionary). An example of microeconomics would be with the state of the economy today the Hyundai car company has decided to offer a guarantee on their new model vehicles that if the purchaser loses their job within the first year of purchase, Hyundai would buy the

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