microeconomics. definition microeconomics a branch of economics that studies the behaviour of...
TRANSCRIPT
![Page 1: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/1.jpg)
MICROECONOMICS
![Page 2: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/2.jpg)
DEFINITION• Microeconomics a branch of
economics that studies the behaviour of individuals and small impacting organizations in making decisions on the allocation of limited resources.
• The word is of Greek origin: mikro - meaning "small" and economics
![Page 3: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/3.jpg)
THE OBJECT OF INVESTIGATION• Deciding individual market
participants:• Individuals / households• Companies• State
• How these decisions and behaviours affect the supply and the demand for goods and services
![Page 4: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/4.jpg)
THE BASIC GRAPH
QUANTITY
PR
ICE DEMAND
SUPPLY
EQUILIBRIUM
Q*
P*
P* - equilibrium price, Q* - equilibrium quantity
![Page 5: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/5.jpg)
THE DEMAND= the quantity of goods that buyers are willing to buy at that price.
The costumers wantto buy a larger quantityat a lower price.
When the price increasesthe demand decreases.
QUANTITYPR
ICE
DEMAND
![Page 6: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/6.jpg)
THE SUPPLY= the quantity of goods sold that the company wants to sell at that price.
The companies wantto sell a larger quantityat a higher price.
When the price increasesthe supply increases too. QUANTITY
PR
ICE
SUPPLY
![Page 7: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/7.jpg)
THE ELASTICITY OF DEMAND• Elastic demand - significantly and
rapidly responds to changes in prices• Expendable and easily replaceable
goods (fashionable goods, one type of pastry)
• Inelastic demand – responds to changes in prices slowly and limited• Goods and services which we need
for life and we can not replace it (salt, fresh water)
![Page 8: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/8.jpg)
THE ELASTICITY OF SUPPLY• The supply is usually increasing. So it
´s usually elastic.• The inelastic supply is not often. We
can find inelastic supply in a short period.
![Page 9: MICROECONOMICS. DEFINITION Microeconomics a branch of economics that studies the behaviour of individuals and small impacting organizations in making](https://reader036.vdocuments.us/reader036/viewer/2022062422/56649f1f5503460f94c36d3f/html5/thumbnails/9.jpg)
Resources:• http://en.wikipedia.org/wiki/Microeconomics• http://cs.wikipedia.org/wiki/Mikroekonomie