Microeconomic Definition of Terms - 1208 Words

Definition of Terms Everyone needs to eat and many people will use a grill to cook their food. In looking at the supply and demand of barbecue grills, several terms will be defined, including economics, microeconomics, the law of supply, and the law of demand. Many factors can lead to a change in supply and demand, which will be reviewed prior to looking at an analysis of trends in barbecue grill consumption patterns. This detailed and difficult analysis is critical to businesses. Definition of Economics According to Colander (2008), â€Å"Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society.† (p. 4) Will anyone in the†¦show more content†¦It would be better for the factories if the retailers ordered grills evenly throughout the year, stockpiling them in preparation for the three-month rush. Retailers don’t want to pay for storage and are dependent on the suppliers ability to keep up with the demand in the three-month rush to ensure the retailer is able to give the customer what he or she wants when he or she wants it. These decisions are made by individual retailers and factories. The problem can â€Å"be solved only by looking across the entire chain – including the retailer and manufacturer – and optimizing the entire network.† (Fung, Fung, Wind, 2008) Sales of grills rose from $3 billion in 2006 to $3.2 billion in 2007 and is expected to â€Å"grow more than 5% annually,† (Ingram, 2007) which is causing an increase in price, so consumers have shifted their preferred retailer from specialty retailers to home improvement centers and discount department stores. Some other possible factors for this shift in where consumers buy their grills may be attributed to the, â€Å"ongoing economic pressures on consumers’ wallets.† (Ingram, 2007) With rising gas prices consumers are eating at home more to reduce their gas consumption and in buying a grill, they areShow MoreRelatedDifference Between Macro And Microeconomics Essay983 Words   |  4 Pagesare macro and microeconomics. This piece of writing will attempt to differentiate them and provide a summary of an article from the internet that is relevant to the topic. The writer will also attempt to define a sunk cost, how it differs from a marginal cost and how he has used marginal analysis to solve a problem. The difference between macro and microeconomics A decent attempt to differentiate among the two sub-branches of economics should start with a definition. 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