Principles of Economics Essay Example | Topics and Well Written Essays - 1000 words - 1

Principles of Economics - Essay ExamplePractically, it is very hard to model actions since there are so many distinct variables. The problem of alcohol abuse is not easily overcome because alcohol is super addictive. In this guinea pig, if the alcohol abuser is an economist, he or she pass on upset many things that he or she would use to help him or her overcome the situation. They leave al wizard find out at the opportunity exist whereby they will consider buying those goods that are best for their health other than alcohol (Mantzavinos, 2001). Additionally, they will use cost benefit analysis by viewing the benefits accrued from stopping the habit of alcohol economic consumption which in this case out weight the disadvantages for example, wastage of money in purchasing alcohol (Osullivan et al, 2011). More so, they will consider rational behavior by assuming which actions are necessary when they stop consuming alcohol. Lastly, an economist would look at the market forces of requisite and bring out of alcohol in that they will analyze the level at which alcohol is supplied to the market and the price that alcohol come with. When the supply is not sufficient, they would prefer to stop imbibing alcohol rather than continuing with the habit of looking for a commodity that is scarce and costly. More so, they will consider the level at which alcohol is demanded therefore, they will analyze the possible outcomes of many people tipsiness alcohol. The possible way to help alcohol abuser is to assist them to realize that they have alcohol consumption problem. Friends and family members can help make the abuser realize that drinking is affecting them by being proper(postnominal) in their discussion. In this manner, the abuser may be willing to look for assistance when they are set about with the harm their alcohol consumption causes to others. With the help of friends and family members, the abuser is likely to overcome the problem of alcohol drinking. for mer(a) groups such as Alcoholic anonymous help the abusers by giving the patients the chance to assist all(prenominal) other to avoid alcohol consumption. 2. Analyze how prescription drugs affect the demand and supply of other products and serve in this country. Prescription drugs have direct inclination to the trends of supply and demand of goods and services in a particular state (Porter, 1998). The sectors that are most likely to be affected include the beneficiaries which in this case are the patients, private insurers and to the extreme public policies. These effects are generally predisposed and become requisite because of the rise in costs of these prescription drugs. Rise in costs of prescribed drugs connotes that the beneficiaries have to go an extra mile to settle their health bills. This may include outsourcing finances that were initially allocated for a unlike purpose. Cutting down allocations from a different sector in order to fill the health geological fault tran slates to low purchasing power from the deprived sectors. 3. Formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand. Include at least one (1) example in each scenario. Price elasticity of demand attempts to measure how price interchange affects the measuring demanded by the prevailing market condition. The formulae for determining the price elasticity is as shown below. Price elasticity (PEoD) = (percentage change in Quantity demanded)/ (percentage chang