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INTRO TO 
MICROECONOMICS
MICROECONOMICS: 
An economic focus on the decision 
making of individuals and businesses. 
It’s like looking at the 
economy through a 
microscope.
MICROECONOMICS: 
In microeconomics, we talk of an 
individual, household, or firm. We 
measure the price of a specific 
product, the number of workers 
employed by a single firm, the 
revenue or income of a particular 
firm, or household, or the 
expenditures of a specific firm, 
government entity, or family.
MICROECONOMICS: 
Individual 
Firm 
Household 
A “firm” is a business - 
especially one with 
multiple owners 
and employees.
THE FREE MARKET: 
Last Unit: 
Capitalism 
Socialism 
Communism 
All of these 
economic systems 
are “mixed 
economies” - a 
mixture of free 
market and 
command features. 
Thus, every economy 
that exists in the world 
has elements of a free 
market: a market 
controlled by supply and 
demand.
SUPPLY AND DEMAND: 
The willingness 
and ability to 
buy something. 
Consumers 
demand things. 
The willingness 
and ability to 
produce 
something. 
Producers 
supply things.
DEMAND
ECON CLASS AUCTION: 
You will be given 24,000 “won”. 
Do your best to purchase something, 
(or multiple things!), 
during the class auction. 
Raise your hand 
to make a bid!
REFLECT: 
Respond to the following questions in your notes: 
1. Which items received the 
most bids? Which received 
the fewest? Why? 
!2. Describe the relationship 
between PRICE and the 
number of people 
DEMANDING an item.

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Intro to Microeconomics

  • 2. MICROECONOMICS: An economic focus on the decision making of individuals and businesses. It’s like looking at the economy through a microscope.
  • 3. MICROECONOMICS: In microeconomics, we talk of an individual, household, or firm. We measure the price of a specific product, the number of workers employed by a single firm, the revenue or income of a particular firm, or household, or the expenditures of a specific firm, government entity, or family.
  • 4. MICROECONOMICS: Individual Firm Household A “firm” is a business - especially one with multiple owners and employees.
  • 5. THE FREE MARKET: Last Unit: Capitalism Socialism Communism All of these economic systems are “mixed economies” - a mixture of free market and command features. Thus, every economy that exists in the world has elements of a free market: a market controlled by supply and demand.
  • 6. SUPPLY AND DEMAND: The willingness and ability to buy something. Consumers demand things. The willingness and ability to produce something. Producers supply things.
  • 8. ECON CLASS AUCTION: You will be given 24,000 “won”. Do your best to purchase something, (or multiple things!), during the class auction. Raise your hand to make a bid!
  • 9. REFLECT: Respond to the following questions in your notes: 1. Which items received the most bids? Which received the fewest? Why? !2. Describe the relationship between PRICE and the number of people DEMANDING an item.