IGCSE Economics Microeconomics

Front

What is the main focus of Microeconomics?

Back

Microeconomics focuses on the behavior of individuals and firms in making decisions regarding the allocation of resources.

Front

What is the definition of demand in Microeconomics?

Back

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

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What is the law of supply?

Back

The law of supply states that, all else being equal, an increase in the price of a good will lead to an increase in the quantity supplied.

Front

What is the concept of opportunity cost?

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Opportunity cost is the value of the next best alternative that is forgone when making a decision.

Front

What is the role of elasticity in Microeconomics?

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Elasticity measures how much the quantity demanded or supplied of a good responds to changes in price or income.

Front

What is a market equilibrium?

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Market equilibrium is the point where the quantity demanded equals the quantity supplied, resulting in a stable market price.

Front

What factors can shift the demand curve?

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Factors that can shift the demand curve include changes in consumer preferences, income levels, prices of related goods, and expectations about future prices.

Front

What is the difference between a change in demand and a change in quantity demanded?

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A change in demand refers to a shift of the entire demand curve due to factors like income or preferences, while a change in quantity demanded is a movement along the demand curve resulting from a change in the price of the good.

Front

What are the determinants of supply?

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The determinants of supply include production costs, technology, number of sellers, and expectations about future prices.

Front

How do consumer expectations affect demand?

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Consumer expectations can affect demand; if consumers anticipate higher prices in the future, they are likely to purchase more now, increasing current demand.