Microeconomics is the study of individual economic decisions. It focuses on how consumers make choices, businesses operate, and markets interact. This guide aims to provide a clear and concise understanding of microeconomics for individuals new to
Microeconomics
Minimum Wage: Balancing Worker Rights and Economic Impact
The minimum wage is a mandated floor for how much employers must pay their workers. It's a policy sparking ongoing debate, with supporters arguing it protects workers from exploitation and critics highlighting potential downsides for businesses and
A Guide to Supply and Demand Elasticities in Economics
Economists introduce the concept of elasticity. This concept measures how responsive consumers and producers are to changes in price and income. Understanding elasticity is crucial for businesses and governments, allowing them to make informed
Unlocking Market Dynamics: A Guide to Supply, Demand, and Equilibrium in Economics
Competitive markets are the foundation of modern economies, shaping consumer choices and influencing market trends. This guide explores the fundamental concepts of supply and demand, providing a clear understanding of how these forces interact to
How Do Businesses Respond to A More Competitive Market?
Revisiting competitive strategy is one way to respond to a more competitive market. For example, in marketing, businesses identify what needs to be adapted to be relevant to today's competition and customer needs, whether related to the product,
Why are some markets becoming more competitive?
Some markets become competitive for several reasons. Globalization is the first reason. It makes the competition map wider because it involves foreign players. For example, it encourages foreign goods to easily enter the domestic market, increasing
Competitive Market: Characteristics and Examples
What it's: A competitive market refers to a market characterized by intense competition in which no player has a dominant power. It is identified as a perfectly competitive market with many buyers and sellers. And they individually cannot
What is the difference between a movement and a shift in the demand curve?
The difference between a movement and a shift in the demand curve lies in the causing factors. The first occurs due to changes in its price. The second occurs due to changes in non-price factors such as consumer income, future price expectations, or
Reasons For a Downward-Sloping Demand Curve
A downward-sloping demand curve holds true in most of our day-to-day cases. It shows a negative relationship between price and quantity demanded. It complies with the law of demand.By the law of demand, a higher price lowers consumers'
What Are the Five Exceptions to the Law of Demand?
While it applies to most things we encounter daily, there are exceptions to the law of demand. Two of them are Veblen goods and Giffen goods. They show a positive relationship between their price and the quantity demanded by consumers.In some
Three Assumptions Underlying the Law of Demand
The three reasons or assumptions underlying the law of demand are the income effect, the substitution effect, and diminishing marginal utility. The first two describe how consumers react when the price of a product changes. The income effect relates
Individual Demand: Definition, Its Curve, Determinants
What's it: Individual demand represents the quantity demanded by a person for a good at a given price level. Two conditions: he has the willingness to buy and has the ability to buy.At different price levels, the quantity demanded is also