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Microeconomics is the branch of economics mainly concerned with decision-making by particular individual agents like firms and consumers within the larger group. It is essential to understand two integral concepts of microeconomics at first- supply and demand from where comes the foundational law of supply and demand.
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Introduction to Microeconomics- a General Overview of Supply and Demand
Overview Microeconomics is the branch of economics primarily concerned with decision- making by individual players such as companies and consumers. At first, it is important to understand two integral concepts of microeconomics- supply and demand, from which the basic law of supply and demand comes. Demand is the rate at which consumers want to buy a commodity, while the ability to supply commodity is determinant of seller’s actions. According to the law of supply and demand, as price of a commodity goes up, the quantity of that commodity demanded by consumers goes down. Similarly, when price falls down, the quantity demanded goes up.
Microeconomics is the branch of economics primarily concerned with decision- making by individual players such as companies and consumers. It is important to understand two integral concepts of microeconomics- supply and demand, from which the basic law of supply and demand comes. Demand is the rate at which consumers want to buy a commodity, while the ability to supply commodity is determinant of seller’s actions. According to the law of supply and demand, as price of a commodity goes up, the quantity of that commodity demanded by consumers goes down. Similarly, when price falls down, the quantity demanded goes up. Key Points
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