Microeconomics

MicroEconomics is the branch of Economics that studies the behavior of individuals and firms in making decisions regarding the allocation of resources. It focuses on supply and demand, price formation, and the interactions between consumers and producers in specific markets.

Examples of microeconomic concepts include:

• Supply and Demand: How the quantity of a good or service supplied by producers and the quantity demanded by consumers interact to determine market prices.
• Elasticity: The responsiveness of consumers to price changes, such as how a decrease in the price of coffee might increase the quantity demanded.
• Consumer Choice: How consumers decide what to purchase based on their preferences and Budget constraints.

Cases illustrating microEconomics include:

• The Market for Coffee: Examining how changes in the price of coffee affect consumer purchasing behavior and producer supply.
• Labor Markets: Analyzing how wage changes influence the supply of labor and employer demand.
• Market Structures: Investigating the differences between Perfect Competition, monopolies, and oligopolies, and their impact on pricing and output.