Article Analysis Paper – Natural Gas Consumption
In order to understand the consumption patterns it is important to understand the principles of Economics and Microeconomics. According to Colander (2010), Economics is the study of the wants and desires of people using their decision making, social, and political realities in society. Microeconomics is a branch of Economics where we can find the studying of changing consumption patterns. Microeconomics is the study of choices that people make and what economically influenced those choices. When an economist looks into why something is doing poorly they look at prices, household buying trends, and how resources are used. Colander (2010) stated that, the law of supply: Quantity supplied rises as price rises and other things remain the same; or quantity supplied falls as price falls and other things remain the same. When there is a rise in prices the demand for that specific good or service will go down. When there is a reduction in prices the demand for specific goods and services will go up. There are many factors that cause changes in consumption patterns which in turn changes the supply and demand of a service or good. Some shift factors of demand are income, prices of other goods, tastes change, expectations change, and taxes change (Colander, 2010). When income goes down and the price of goods and services go up businesses and people are going to stop buying and or cancel them. Each era has their changes in fads and wants, so people’s tastes are a major factor for demand. If the people buying the service or good simply no longer like it they will not use or buy it. The same goes with expectations, if a service or good falls short people will no longer use it, or if it exceeds all expectations people will buy lots of it. And of course if taxes change there will be a large change in whether or not people have the ability to purchase or maintain their purchasing abilities. Some shift factors for...
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