Course: Microeconomics Text: Varian’s Intermediate Microeconomics.
Intro to Microeconomics
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Transcript of Intro to Microeconomics
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INTRO TO MICROECONOMICS
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MICROECONOMICS:An economic focus on the decision making of individuals and businesses.
It’s like looking at the economy through a
microscope.
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MICROECONOMICS:In microeconomics, we talk of an individual, household, or firm. We measure the price of a specific product, the number of workers employed by a single firm, the revenue or income of a particular firm, or household, or the expenditures of a specific firm, government entity, or family.
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MICROECONOMICS:
Individual
Household
Firm
A “firm” is a business - especially one with
multiple owners and employees.
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THE FREE MARKET:Last Unit: Capitalism Socialism
Communism
All of these economic systems
are “mixed economies” - a mixture of free
market and command features.
Thus, every economy that exists in the world has elements of a free
market: a market controlled by supply and
demand.
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SUPPLY AND DEMAND:The willingness and ability to
buy something.
Consumers demand things.
The willingness and ability to
produce something.
Producers supply things.
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DEMAND
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ECON CLASS AUCTION:You will be given 24,000 “won”.
Do your best to purchase something, (or multiple things!),
during the class auction.
Raise your hand
to make a bid!
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REFLECT:1. Which items received the
most bids? Which received the fewest? Why?
!
2. Describe the relationship between PRICE and the number of people DEMANDING an item.
Respond to the following questions in your notes: