What is Microeconomics?

This lesson explores the fundamental challenges that all economies face: scarcity, choice, and opportunity cost. You will learn how limited resources force individuals and societies to make decisions about how to allocate what they have most effectively. We will examine the concept of opportunity cost to understand the trade-offs involved in every economic decision. 

This lesson focuses on the Production Possibility Frontier (PPF), a fundamental concept in economics that illustrates the trade-offs and opportunity costs of production choices. We will explore the concepts of efficiency, inefficiency, and economic growth, and understand how shifts in the PPF can indicate changes in an economy’s productive capacity.

Tackle the ownward-sloping demand curve and the factors that can cause shifts in demand.  Explore key determinants of demand, including consumer income, preferences, prices of related goods, expectations, and the number of buyers.  This lesson gives a comprehensive view of how various factors influence consumer purchasing decisions and market demand.

Think of the demand curve as a rollercoaster ride through the economy. A movement along the curve is just like when you cruise up or down the track, but a shift is like when the whole ride suddenly teleports to a new spot in the park! This crazy ride occurs when things such as your paycheck, your tastes, or even the price of other stuff changes. Buckle up, because knowing this roller coaster is the key to being able to predict how people spend their cash!

Understand the Demand Curve Equation in economics, its significance, and how it shapes market dynamics.

​Understand the law of supply, factors influencing supply, and how supply curves are formed.