Microeconomics and the Laws of Supply and Demand
Vanessa Rodriguez
Week 2
ECO/ 365
Professor Johnson

What is economics? Some might say that economic is the stock market meanwhile others say it’s “my way of living”. Our Economics textbook defines economics as the study of how human beings manage their wants and needs. For an instant, I want a pair of new leather boots, but I need to pay my rent. My decision of paying my rent instead if of purchasing a new pair of leather boots illustrations that prioritizing my needs before any of my desires. The theory of economics is divided into two individual categories known as the microeconomics and macroeconomics theories. Microeconomics theory teaches of how individual choice is influenced by economics forces. Example, the high prices of the new IPhone6, is based on the how many people want or are willing to buy them. Then there is macroeconomics, which is the study of the whole economy. Such as the inflations problem that is seen on a daily basis and rising unemployment rates throughout the country.
When speaking of microeconomic discuss main principles one of which is explain in details in weeks two simulation. This concept is known as supply and demand. These principles describe how the price and quantity rely on one another. First and foremost, is the Law of Demand. This law states that quantity demand increases as price fall, other things constant. And vice versa when quantity demanded decreases as price rises. We can graph the demand on an x and y axis as a curve that has downward to the right slope that indicates the connection between price and quantity. There are times where there will be movement along the demand curve or a shift. A shift in the demand curve happens when quantity demanded wants or needs an amount per unit of time at a specific price. Our textbook explains that are several influences such