Ms. Kronlokken

 Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold.

SUPPLY VS. DEMAND  Supply and Demand is an economic model of price determination in a market.  Supply - the amount of something that firms, consumers, laborers, providers of financial assets, or other economic agents are willing to provide to the marketplace.  Demand - the utility for a good or service of an economic agent, relative to his/her income.

THE BASICS  Microeconomics is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers.

MACRO VS. MICRO  Macroeconomics- “Bigger picture” Deals with the performance and decision making of the economy as a whole, rather than individual markets.  Microeconomics- “Smaller picture” How individual businesses decide how much of something to produce and how much to charge for it