Economic Concepts Essay

Document Type:Essay

Subject Area:Economics

Document 1

The paper aims to discuss examples from my everyday life that discourse the economic concepts, which have been taught during the course. One of my examples will focus on the law of supply and demand as the economic model. Demand in the field refers to the quantity of a product or service that is desired by the purchasers (Hursh & Roma, 2016). On the other hand, supply is the amount of merchandise the market can offer. The concept affects the purchasing power and in turn, influences the decisions that I make. For example, I can buy more sweaters in the summer costing three dollars compared to when the price increases to fifteen dollars, during winter. It is because during the cold season the demand is high while in the summer the market is low as it is hot actually to wear a sweater.

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The other microeconomic concept is diminishing marginal utility. The law states that all else equal as consumption escalates the marginal utility resultant from each additional unit declines (Hursh & Roma, 2016). Utility in economics refers to the satisfaction or happiness one has after the purchase of a product or service (Solomon et al. It refers to the profit lost when one alternative is considered over another (Hursh & Roma, 2016). I widely utilize the concept to serve as a prompt to examine all the reasonable options while making a verdict. Moreover, the future predictions in cost and quality of products determine the amount of money to be spent. While buying books, I expect the prices of the manuscripts to reduce tomorrow. Therefore, I end up delaying purchasing the scripts needed for my course till the rates go down to take advantage of the lower cost.

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