Overview
Microeconomics plays a crucial role in understanding the daily decisions we make regarding spending, saving, and investing. By studying concepts like supply and demand, opportunity cost, and marginal utility, individuals can make informed choices that align with their financial goals. These principl...
Key Terms
Example: The supply of apples increases during harvest season.
Example: The demand for electric cars is rising as technology improves.
Example: Choosing to spend money on a concert ticket means you can't spend it on a new phone.
Example: The first slice of pizza gives more satisfaction than the fourth.
Example: When the price of coffee is set where the quantity supplied equals the quantity demanded.
Example: If you would pay $10 for a book but buy it for $7, your consumer surplus is $3.