In today's society, the rush of supply and demand runs the ever-living world that many people call home. It runs so well that many have found ways to use this tool and create a mountain of riches that most will never see. To understand this mountain and incorporate a successful plan, society needs to understand how this mountain was built. It begins with a covering known as economics that leads to a multitude root system known as microeconomics only to be fed by the morsels of supply and demand. Though what seems simple in building this mountain, many factors exist waiting for their chance to cause destruction. However, to understand our quest to the top, consumers must understand the clues that are defined as economics, microeconomics, Law of supply and the Law of demand. Dictionary.com states that economics is " The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems. According to Dictionary.com microeconomics is " The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. Buyers and sellers concern it with the interaction between individual buyers and sellers and the factors that influence the choices made. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (e.g. coffee industry). Investopedia states that "Law of Supply is a microeconomic law stating that all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases, and vice versa. As the price of good increases, suppliers will attempt to maximize profits by increasing the quantity of the product sold.
According to the definition given by Investopedia, Law of Demand is a microeconomic law that states that all...
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