Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 1250 words

Introduction to Microeconomics - Essay Example The essay "Introduction to Microeconomics" describes key concepts of microeconomics and how they are applied to everyday life. Also, the paper analyses the microeconomics as a study of how individuals and societies distribute the funds to satisfy their wants. No one has enough time or money to do everything, no matter how hard they try. This is where economics comes in and plays a vital role in the lives of everyday consumers. More specifically, microeconomics is about economic choices of an individual person. This has more to do with macroeconomics, which looks at a country’s economic data instead of individual data. Actually, there are many topics to discuss in microeconomics, but this paper will just focus on three key subjects that are talked about in microeconomics the most: opportunity cost, demand and supply, and price elasticity. Because there is not enough time or money to fulfill all the needs of wants of an individual, there needs to be a choice made between several items. This is otherwise known as opportunity cost. The actual opportunity cost of a product is the cost involved in not selecting another product. Another important concept in microeconomics is demand and supply. The demand for a good or service is the association between the price of that good and the quantity demanded of that good in a particular time period, all other things being equal. And the last major concept of microeconomics is elasticity, which measures how the quantity demanded or quantity supplied changes in response to another variable.