How Different Aspects Of Economics Affect The Consumer And...

Introduction To Economics Music Video Essay Caitlin Brice St. Petersburg College Abstract This essay will be explaining how different aspects of Economics affect the consumer and how helpful it is for people to understand them. Different economic ideas and concepts will be explained in detail and will include examples displaying how it applies to the average consumer. The vocabulary being explained will be terms that will indefinitely affect every consumer and will show how important it is for society to be familiar with economics. Introduction To Economics Music Video Essay Every consumer, whether they realize it or not, participate in activities that relate to economics. Purchasing gas, buying insurance, or†¦show more content†¦For a consumer, this means paying a lower price for goods than one would pay in any other market type (Pettinger 2012). An example of perfect competition can be seen in a small amount of wheat being grown by a farmer because no matter how much is grown, the market price will not change (O’Sullivan, Sheffrin, Perez 2014). Perfect c ompetition is helpful for a consumer because the prices are usually low and stable as demand meets with price to create equilibrium. The next topic discussed in the music video was monopolies (AP Econ Music Video Microeconomics SPHS 2009). A monopoly can be seen when the number of people selling is large, products being sold are different, and coming into and leaving the market is simple. Zero economic profit will be made by the competitor in the long run, but this still creates the issue of the consumer overpaying for goods and services (O’Sullivan, Sheffrin, Perez 2014). The consumer will not be able to replace the good because it is difficult to find substitutes for monopolized products (Manuel n.d.). Anti- trust laws were put into act in order to create fair competition between businesses (O’Sullivan, Sheffrin, Perez 2014) and this is positive for the consumer. The consumer needs to understand monopolies because there are many existing today and they can be harmfu l.