Micro economics
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Microeconomics analyzes individual consumer and firm behavior in markets, how demand and supply determine equilibrium price and quantity, and factors like opportunity cost. It also examines market structures including perfect competition, monopoly, oligopoly, and monopolistic competition. Key concepts are how demand can shift to a new equilibrium, opportunity cost as the next best alternative forgone, money as a medium of exchange, and sources include Wikipedia and Google.
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- 2. • It analyzes the market behavior of individual consumers and firms
- 4. • The graph depicts a right-shift in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new market-clearing equilibrium point on the supply curve (S).
- 5. • The theory of supply and demand usually assumes that markets are perfectly competitive • This implies that there are many buyers and sellers in the market and none of them have the capacity to significantly influence prices of goods and services
- 6. • Opportunity cost of an activity (or goods) is equal to the best next alternative uses/foregone • It is hard to quantify • Opportunity cost is one way to measure the cost of something
- 7. • Money is a good that acts as a medium of exchange in transactions • So money isn't just pieces of paper.
- 8. Market structure • Monopolistic competition • Oligopoly • Duopoly • Monopoly • Perfect competition
- 9. SOURCES : Wikipedia And other web-sites found at Google.Com