Microeconomics

To understand how individual choices shape the economy, microeconomists rely on several foundational pillars: 1. Scarcity and Opportunity Cost

Human wants are virtually unlimited, but physical and financial resources are finite. Microeconomics

All else being equal, as the price of a good increases, producers are willing to supply more of it to maximize profits. To understand how individual choices shape the economy,

At the root of almost all microeconomic analysis is the interaction between buyers and sellers: At the root of almost all microeconomic analysis

All else being equal, as the price of a good increases, consumer demand for that good falls.

Because resources are scarce, every choice carries a trade-off. The opportunity cost is the value of the next best alternative that is given up when making a decision. 2. Supply, Demand, and Market Equilibrium

The field of microeconomics is generally broken down into targeted theories and analytical frameworks: Consumer Choice Theory Microeconomics- Everything You Need to Know