Microeconomics Theory

Paper Summary:

This paper examines the theory of that all resources are finite. The author points out that key to the concepts underlining the study of microeconomics are the laws of supply and demand. The paper stresses that the laws of supply and demand are very much in evidence in the restaurant industry. The author relates that one beneficiary of the economic downturn are fast food restaurants, especially among the market segment with the least inclination for cooking or interest in health, predominantly male, age 18 to 29.

From the Paper:

"The prices of substitute goods also affect supply and demand. If Dunkin' Doughnuts cuts the price of its coffee and breakfast sandwiches, discount merchandiser McDonald's may see a decrease in sales of its coffee and Egg McMuffins, but not in its sodas and hamburgers, because these are not substitute good for breakfast beverages and foods. Changes in the price of complementary goods--gas and large vehicles being an obvious example, will also affect supply and demand, as the price of gas goes up, demand for gas guzzling-vehicles will decrease."

Sample of Sources Used:

• "Economics Basics: Demand and Supply." (2008).Investopedia. Retrieved 26 Feb 2008 at http://www.investopedia.com/university/economics/economics3.asp
• Hall & Lieberman. "Theory of Supply and Demand." Chapter 3: PowerPoint. Thomas Southwestern. Retrieved 26 Feb 2008 at http://yuli.public.iastate.edu/Lectures/3%20Supply%20and%20Demand.ppt#327,2,Overview
• Knight, Dana. (23 Oct 2007). "Cash-strapped Americans have dining out heartburn." Indianapolis Star. Retrieved 26 Feb 2008 at http://www.freep.com/apps/pbcs.dll/article?AID=/20071023/NEWS07/71023036/0/NEWS05
• "Microeconomics." (2008). Investor words. Retrieved 26 Feb 2008 at http://www.investorwords.com/3051/microeconomics.html
• Rodda, Chris. (2004). "Definitions of economics and social science." Economics for International Students: IB. Retrieved 26 Feb 2008 at http://www.cr1.dircon.co.uk/TB/1/1.1.1.htm

More papers on Microeconomics Theory:

• Research Paper # 106505 : "Microeconomics in Construction"
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• Term Paper # 96367 : "Arthur Pigou"

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