Human wants are virtually unlimited, but physical and financial resources are finite.
Unlike macroeconomics, which takes a "top-down" approach to examine national aggregates like GDP and inflation, microeconomics applies a "bottom-up" lens to explain how everyday financial decisions determine market prices and output levels. ⚖️ Core Concepts of Microeconomics
All else being equal, as the price of a good increases, consumer demand for that good falls.
At the root of almost all microeconomic analysis is the interaction between buyers and sellers:
Because resources are scarce, every choice carries a trade-off. The opportunity cost is the value of the next best alternative that is given up when making a decision. 2. Supply, Demand, and Market Equilibrium
This occurs where the quantity demanded by consumers exactly equals the quantity supplied by producers. At this intersection, the market price stabilizes. 3. Elasticity