Matsushita

BBA 2002

Principle of Microeconomics

GAN KAI EN

950417-01-6470

202025

MR. CHONG

JULY SEMESTER 2014

CONTENT

NO | CONTENT | PAGES |

1 | INTRODUCTION | |

2 | TASK 1 | |

3 | TASK 2 | |

4 | TASK 3 | |

5 | TASK 4 | |

6 | TASK 5 | |

7 | CONCLUSION | |

8 | REFERRENCES | |

9 | COURSEWORK | |

INTRODUCTION

Microeconomics is a branch of economics that studies the behavior of individuals and small impacting organizations in making decisions on the allocation of limited resources. It is a statement of inter-relationships among economic factors that explains what may cause what, or what may happen under certain circumstances and also called economic law. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.

Furthermore, microeconomics analyzes market failure, where markets fail to produce efficient results, and describes the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include general equilibrium, markets under asymmetric information, choice under uncertainty and economic applications of game theory. Also considered is the elasticity of products within the market system.

Apart from that, it is an important distinction to make is the difference between demand and the quantity demanded. The quantity demanded refers to the specific amount of that product that buyers are willing to buy at a given price. This relationship between price and the quantity of product demanded at that price is defined as the demand relationship. Supply is defined as the total quantity of a product or service that the marketplace can offer. The quantity supplied is the amount of a product/service that suppliers are willing to supply at a given...