The Effects of the Concepts of Economics

Running head: The Effects of the Concepts of Economics

The Effects of the Concepts of Economics

Andrea Rowlett

University of Phoenix

The idea that Will Bury had to start a business of transforming text materials and creating a file with the option of reading it digitally or listening to it with a very realistic synthetic voice was a great idea. Some of the economic concepts that Will had to take into account were that of price and demand. There are several different concepts that can be addressed in regard to the Will Bury’s Price Elasticity Scenario. The two concepts that I will address throughout this paper will be that of utility and the change in demand. These concepts correlate directly with the scenario that was given. Explaining how these concepts relate to the scenario will be the challenge of this paper. By explaining how these concepts, one can see how these economic concepts could relate to an everyday situation. Venture with me as I explain how these economic concepts are expressed within the scenario.

The first concept that will be address will be that of change in demand. As stated in the scenario,” Will found an article from a reputable source that suggests customers of digital and audio books are relatively affluent, their household incomes grow above average, and acceptance of digital reading for pleasure is lagging behind acceptance of digital reading for business, but the digital listening to books is attracting the same audience who download music to digital devices.” According to McConnell and Brue (2004), “A favorable change in consumer tastes (preferences) for a product—a change that makes the product more desirable—means that more of it will be demanded at each price. Demand will increase; the demand curve will shift rightward. An unfavorable change in consumer preferences will decrease demand, shifting the demand curve to the left.” As time goes on and society begins to change, there will be an increase in...