Introduction to Microeconomics- a General Overview of Supply and Demand
Microeconomics is the branch of economics primarily concerned with decision- making by individual players such as companies and consumers. At first, it is important to understand two integral concepts of microeconomics- supply and demand, from which the basic law of supply and demand comes. Demand is the rate at which consumers want to buy a commodity, while the ability to supply commodity is determinant of seller’s actions. According to the law of supply and demand, as price of a commodity goes up, the quantity of that commodity demanded by consumers goes down. Similarly, when price falls down, the quantity demanded goes up.
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