Overview
Microeconomic foundations of decision-making provide essential insights into how individuals and firms navigate choices in a world of limited resources. Understanding concepts like scarcity, opportunity cost, and utility maximization helps explain the rationale behind economic behaviors and market d...
Key Terms
Example: Water scarcity in drought-prone areas.
Example: Choosing to study instead of going out with friends.
Example: The utility gained from eating a delicious meal.
Example: The extra satisfaction from eating a second slice of pizza.
Example: High demand for a new smartphone increases its price.
Example: The price of a concert ticket where the number of tickets sold equals the number of tickets available.