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Introduction to Microeconomics- a General
Overview of Supply and Demand
Overview
Microeconomics is the branch of economics primarily concerned with decision-
making by individual players such as companies and consumers. At first, it is
important to understand two integral concepts of microeconomics- supply and
demand, from which the basic law of supply and demand comes.
Demand is the rate at which consumers want to buy a commodity, while the ability
to supply commodity is determinant of seller’s actions. According to the law of
supply and demand, as price of a commodity goes up, the quantity of that
commodity demanded by consumers goes down. Similarly, when price falls down,
the quantity demanded goes up.
Key Points
Microeconomics is the branch of
economics primarily concerned
with decision- making by
individual players such as
companies and consumers.
It is important to understand two
integral concepts of
microeconomics- supply and
demand, from which the basic law
of supply and demand comes.
Demand is the rate at which
consumers want to buy a
commodity, while the ability to
supply commodity is determinant
of seller’s actions.
According to the law of supply
and demand, as price of a
commodity goes up, the
quantity of that commodity
demanded by consumers goes
down. Similarly, when price
falls down, the quantity
demanded goes up.
Thank You
Brainware University

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Introduction to Microeconomics- a General Overview of Supply and Demand

  • 1. Introduction to Microeconomics- a General Overview of Supply and Demand
  • 2. Overview Microeconomics is the branch of economics primarily concerned with decision- making by individual players such as companies and consumers. At first, it is important to understand two integral concepts of microeconomics- supply and demand, from which the basic law of supply and demand comes. Demand is the rate at which consumers want to buy a commodity, while the ability to supply commodity is determinant of seller’s actions. According to the law of supply and demand, as price of a commodity goes up, the quantity of that commodity demanded by consumers goes down. Similarly, when price falls down, the quantity demanded goes up.
  • 3. Key Points Microeconomics is the branch of economics primarily concerned with decision- making by individual players such as companies and consumers. It is important to understand two integral concepts of microeconomics- supply and demand, from which the basic law of supply and demand comes. Demand is the rate at which consumers want to buy a commodity, while the ability to supply commodity is determinant of seller’s actions. According to the law of supply and demand, as price of a commodity goes up, the quantity of that commodity demanded by consumers goes down. Similarly, when price falls down, the quantity demanded goes up.