Introduction to Microeconomics - Study Notes
1. Key Concepts
• Scarcity: Limited resources vs. unlimited wants.
• Opportunity Cost: The value of the next best alternative.
• Supply and Demand: Determines equilibrium price and quantity.
2. Sample Questions
Q1
Define opportunity cost and provide a real-world example.
Q2
Explain how an increase in demand affects equilibrium price.
Q3
What factors can shift the supply curve?
Q4
Differentiate between microeconomics and macroeconomics.
3. Quick Summary
Microeconomics focuses on individual decision-making units such as households and firms. It studies
how they interact in specific markets, how prices are formed, and how resources are allocated
efficiently.