Microeconomics Principles

The study of how individuals and societies allocate scarce resources to satisfy unlimited wants.

The condition of having limited resources to meet unlimited wants.

The value of the next-best alternative forgone when making a choice.

The branch studying decisions of individuals, households, and firms.

The branch studying economy-wide phenomena like GDP, inflation, and unemployment.

Any arrangement where buyers and sellers interact to trade goods and services.

The quantity of a good producers are willing to sell at various prices.

The quantity of a good consumers are willing to buy at various prices.

All else equal, as price rises, quantity demanded falls.

All else equal, as price rises, quantity supplied rises.

The price at which quantity supplied equals quantity demanded.

Quantity demanded exceeds quantity supplied; prices tend to rise.