Choose 3 Micro concepts that are important or interesting, describe them briefly, explain how all three are inter-related, and what relevance they would have to one's life.
Microeconomics is the study of the economic behaviour of individual consumers, firms, and industries and the distribution of production and income among them. It considers individuals both as suppliers of labor and capital and as the ultimate consumers of the final product. It analyzes firms both as suppliers of products and as consumers of labor and capital.
3 Micro Concepts
A consumer's desire and willingness to pay for a good or service. For example, a consumer may be willing to purchase 2 lbs of potatoes if the price is $0.75 per lb. However, the same consumer may be willing to purchase only 1 lb. if the price is $1.00 per lb. The main determinants of the quantity one is willing to purchase will typically be the price of the good, one's level of income, personal tastes, the price of substitute goods, and the price of complementary goods. The quantity demanded is the amount of a certain product people are willing to buy at a certain price, and the relationship between price and quantity demanded is known as the demand relationship.
This explains the important concepts of microeconomics and their utility. The concepts discussed are demand, supply and elasticity. References are included.