Microeconomics Introduction

The amount of a good that consumers are willing to buy at various prices. 

• Demand Curve

• Basic Economic Principle

• Supply Curve

• Production Possibilities Frontier

Consumers will buy more of a good or service when its price is lower and less when its price is higher.

• Law of Supply

• Tariffs

• Law of Demand

• Market System

 The amount of a good that producers are willing to make at various prices.

• Law of Demand

• Supply Curve

• Demand Curve

• Basic Economic Principle

The quantity of goods supplied will be greater at a higher price than it will be at a lower price.

• Law of Demand

• Consumers

• Law of Supply

• Law of Diminishing Marginal Utility

Consumers react to a rise in the price of one good by consuming less of that good and more of a substitute good.

• Income Effect

• Quantity Effect

• Substitution Effect

• Law of Supply

Consumers react to rising prices when income does not change by consuming less of a good.

• Substitution Effect

• Supply and Demand

• Income Effect

• Doppler Effect

A measure of how consumers react to a change in price.

• Basic Economic Principle

• Elasticity of Supply

• Elasticity of Demand

• Income Effect

Buying much less of a good

• > 1 Elastic Demand

• < 1 Inelastic Demand

• Unitary

 Buying the same, or just a little less of a good.

• > 1 Elastic Demand

• < 1 Inelastic Demand

• Unitary

Amount purchased is unaffected by price.

• > 1 Elastic Demand

• < 1 Inelastic Demand

• Unitary