Essay on Microeconomics
These actions mainly involve taxations by the government as well as laws which tend to regulate consumption of a product (Baumol et al 12). Microeconomics helps in educating us on the appropriate actions which should be undertaken following a change of certain conditions (Baumol et al 14). Micro-economics is more of supply and demand as well as the interaction between buyers and seller of various products in the market (Boland 10). Microeconomics play a very key role in analyzing the market forces which influence the prices of goods and services in the market (Baumol et al 15). This play a very crucial role in demand and supply of the same as prices of goods is one of the key factor which influence there demand and supply.
Government involvement in falling of volume of sales of beverages with added sugar as evidenced in taxation. Taxations influence supply and demand of products in the market (Moulin 5). Taxation results to increase in input costs hence making the production costs of a product to be very high. This makes the manufacturers escalate the prices of their products so as to cater for the increased production cost as a result of high taxation by the government so as to maintain their profit margin (Moulin 8). When the prices of a product are increased it demand definitely reduces consequently resulting to the low volume of sales. The reduction in the rate of consumption of certain products like the case of sodas in Mexico results to low demand of the same (Moulin 17).
The public health personnel in Mexico in conjunction with the government were intending to reduce the consumption of beverages with added sugars such as sodas. This is because as per the public health crusaders, the beverages were leading to increased cases of diabetes and obesity hence increasing burden to the government as it had to spend more on obesity and diabetes medication. Generally, the case of taxation on sodas in Mexico which led to decrease in volume of sale is directly related to microeconomics which deals with supply and demand of goods and services (Moulin 18). This is because tax increases prices of goods making them more expensive (Moulin 18). It focuses on how effective management of supply chain ensures there is a continuous supply of the certain good in the market hence ensuring the increasing demand of the products is effectively met even in times of crises of production of the goods (Baumol et al 31).
Additionally, it also focuses on competition in the market. It shows how competition can be lived by making sure there is product differentiation. Through product differentiation, different brands of the same products are easily identified by consumers in the market hence ensuring their consumption are maintained (Baumol et al 32). The demand for a product can be increased by creating awareness of the product among the public (Baumol et al 37). Through advertisement, new users of a certain product are created thus increasing demand for product since the increase in a number of consumers increases demand as well (Boland 23). This makes the article on “Hummus Is Conquering America” related to microeconomics since it focuses on how it can use advertisement to enhance awareness of hummus among the American citizens hence attracting new consumers of the hummus.
This will consequently increase the demand for the hummus as the number of consumers will be increased. Averaging prices of products makes it a bit affordable for the public members as reiterated in “Hummus Is Conquering America” article. This will increase its demand as it will be less expensive thus increasing the volume of sales. When the bees ‘population is reduced due to the occurrence of plagues, there will be less number of bees to make honey thus reducing the quantity of honey produced. With the low quantity of production, there will be low supply to meet the demand of consumers of honey in the market (Moulin 24). This article applies microeconomics principles as it expounds on how climate changes affect supply of various seasonal products such as fruits.
Additionally, the article explains how plagues negatively affect the agents of production which as a result lowers production hence occurring shortage in supply by making use of beekeeping business (Moulin 25). Video four War on cabs in Mogadishu The articles on the war on cabs in Mogadishu is also related to microeconomic as the basis of the argument is based on microeconomic principles. Conclusion All the articles are related on microeconomics. This is because they make use of microeconomic principles in their story as well as building their arguments. The articles mostly focus on how various factors affect supply and demand of goods and services in the market which is a very key aspect of microeconomics. Additionally, it also shows how the government can influence trade in the market through institution of various Acts which have either positive or negative impact on demand and supply curve of goods and services.
The articles show how various implications of human actions influences utilization and distribution of resources which consequently influences demand and supply of the same goods and services as per microeconomics. Moulin, Hervé. Cooperative microeconomics: a game-theoretic introduction. Princeton University Press, 2014: 2-25. Nicholson, Walter, and Christopher M. Snyder.
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