Microeconomic Theory

Microeconomics examines individual economic units and their decision-making processes regarding resource allocation and interactions in the market.

Introduction To Microeconomics

Microeconomics examines individual economic units, focusing on their decision-making processes and interactions in the market.

Key Concepts In Microeconomics

This section delves into fundamental concepts in microeconomics, emphasizing individual economic units' behavior and decision-making.

Scarcity And Choice

Scarcity refers to the limitation of resources compared to unlimited human wants, necessitating choices and trade-offs in decision-making.

Demand And Supply

This section explores the concepts of demand and supply, focusing on how they influence market prices and equilibrium.

Equilibrium Price

The equilibrium price is the price at which the quantity demanded by consumers equals the quantity supplied by producers, ensuring a balanced market.

Elasticity

Elasticity measures the responsiveness of demand and supply to changes in price.

Consumer Behavior

Consumer behavior examines how individuals make decisions regarding the consumption of goods and services based on various factors.

Production And Costs

This section explores the concepts of production processes and the various types of costs associated with them.

Market Structures

Market structures define the competitive dynamics within markets, influencing pricing, supply, and consumer choice.

Market Failure

Market failure occurs when a free market fails to efficiently allocate goods and services.

Government Intervention

Government intervention in markets aims to correct inefficiencies and ensure fair practices.

Conclusion

Microeconomics provides essential insights into individual decision-making in markets, helping us understand resource allocation and market dynamics.

Summary

Microeconomics examines individual economic units and their interactions, focusing on resource allocation and price determination.