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Article Analysis Paper

900 words - 4 pages

The principles of supply and demand are what most think of when the topic of economics emerges. Although the study of economics covers a broad range of meaning, one cannot help but to think that economics cover the relationships between people and spending habits. This paper will define economics, the law of supply, and the law of demand. In addition to defining terms, this paper will take the article, Demographic Analysis for Consumer Spend in Communications, and list the factors contributed to the change of supply and demand with regards to communications.
Defining Economics

The study of economics consists of a broad range of meaning. A brief definition can be that economics is a ...view middle of the document...

The law of supply takes in consideration all supplies, labor spent, marketing costs, packaging, and all expenses put into a good before placing the product to the market place. Thus, a better definition is that the law of supply is the relation between the price of a good or service and the quantity available for sale at that price. The law of supply states quantity supplied rises as price rises, when all other factors remain constant (Colander, 2008).
Law of Demand
The law of demand differs from the law of supply because the law of demand is more individualistic. The law of demand relates to the relationship between the amount of a good orservice that both the consumer desires and is able to purchase. In this law, if a price of a service reduces, then, the demand for that good rises. The same happens when reverse. If a price of good increases, then that demand decreases. The changes to a demand curve are continuously because consumer’s tastes change, the economy changes what consumer can afford, and natural disasters also change the want or need.
Factors Leading to Change in Supply and Demand
In the article, Demographic Analysis for Consumer Spend in Communications, it was found that communications is a necessity when spending increases towards the lower income segments of world population. The article takes the demographic conditions of countries where communications penetrations is still growing and people’s interest to spend on communications as a part of their overall consumptive pattern (Pollen & Elornata, 2009).The study compares global spending pattern categories of consumption by the use of various databases available to the study. The article concentrates on lower income groups but concentrates on the factors that change the...

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