MICROECONOMICS

What is microeconomis?

• Microeconomics is a part of economics

that contemplates the traits of the
decision-makers within the economy
such as households, individuals, and
enterprises.
Concepts covered
under
microeconomics
• The manifesto on which the microeconomics notion is
built reclines at the very heart of economic reasonability
of how the decision-makers pick between scanty
resources that have substitute uses. The customers
demand goods and services and the producers offer these
for sale, but none of the individuals can acquire
everything they require from the economic system.

Dearth, choice, and

opportunity cost:
• A prime part of the study of microeconomics is
committed to the investigation of how prices are
determined in the marketplace. Manufacturers and
customers initiate forces that we term them as supply and
demand accordingly, and it is their interaction within the
marketplace that devises the price mechanism.

Price mechanism
• Demand is initiated by the needs of the customers. The nature of
demand incurs much to the basic worth that customers discern
the goods or services to possess. The degree of demand for the
goods or services is determined by various factors such as

• Price of goods or services

• Price of other goods and services, alternatives, and contingents
• Emoluments
• Tastes and proclivity
• Expectations

Demand
Demand Curve
• Supply refers to the number of goods and services offered
to the marketplace by the manufacturers. We can
delineate the association between the quantity demanded
and the price. We can also contemplate the link between
the quantity supplied and the price

Supply
Supply Curve
• The concept of elasticity is solicited with the receptivity
of quantity demanded or quantity supplied to a variation
in price. If a minute variation in price brings about an
enormous change in the quantity demanded, then the
price elasticity of demand is said to be highly elastic. On
the contrary, if a variation in price has a minute or no
effect on the quantity demanded, then the demand is said
to be highly inelastic.

Elasticity
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