Supply and demand and scarcity, Schemes and Mind Maps of Microeconomics

Download Supply and demand and scarcity and more Schemes and Mind Maps Microeconomics in PDF only on Docsity! Microeconomics Scarcity: means that human unlimited needs, facing limited supple resources . Microeconomics: focus on the individuals such as consumers, workers, firms Macroeconomics: looks at the economy as a whole. Such as inflation, unemployment … Supply vs Demand Supply the quantities of a certain good in the market Demand is how much people want of a certain good in the market The law of supply When the prices goes up, the supply goes up The law of demand When the prices goes up, demand goes down. Customer preference Trends Prices of substitutes and competing products Income The relationship between supply and demand Surplus: QS > QD low price Shortage: Q D > Q S very high prices Shortage VS scarcity Unlike shortage, scarcity has nothing to do with price …