What is Microeconomics? (Essay Sample)

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Microeconomics
Demand and supply are two forces that regulate each other. In these forces regulate one another and set market prices. The article Increase of sugar supply outlines factors that lead to shifts and demand curve. Many factors influenced demand for sugar. The price of sugar increased because of the looming festive season festive. During the festive season, people buy goods in plenty, and this may lead to either increase in prices or shortages. These future expectations have forced people to buy a lot sugar for precautionary purposes. People increase their demand for goods to be safe during looming crises. Substitutes and level of income affect demand for goods largely. Sugar has no close substitute, and this means an increase in price will not change its demand. There exists income effect that causes an increase in demand of goods and services. An increase in income levels leads to increased purchasing power. Increased income means that people have increased amount of disposable income. Prices are the key determinants of demand. Increase in prices leads to decrease demand and vice versa. Moreover, government urged farmers to increase supply of sugar because this will lead to decrease in price.
Supply refers to amount of goods that suppliers present to the market determine supply. Price offered determines the...