Good morning, afternoon, and/or evening, and welcome to Introduction to Microeconomics. Wikipedia defines Microeconomics to be "the study of the economic behaviour of individual consumers, firms, and industries and the distribution of production and income among them".
This is an introduction to microeconomic analysis of the workings of supply and demand in the determination of price, resource allocation, and distribution. In this course markets are analyzed for their effect on economic efficiency and income distribution.
But what does this mean? "The study of economic behavior". One of the key concepts in Economics is the idea of scarcity. Society as a whole has unlimited wants, and scarcity occurs because there are not enough resources to satisfy these wants. Economic behavior comes into play when deciding how to allocate the resources available. (more...)