Microeconomics & Macroeconom Revision

1. 📌 Essentials

• Microeconomics studies individual agents (households, firms) and markets.
• Macroeconomics analyzes aggregate economic variables (GDP, inflation, unemployment).
• Market structures: perfect competition, monopolistic competition, oligopoly, monopoly.
• Scarcity: limited resources vs unlimited wants.
• Opportunity cost: value of the next best alternative foregone.
• Law of demand: inverse relationship between price and quantity demanded.
• Law of supply: direct relationship between price and quantity supplied.
• Equilibrium: where supply equals demand; determines market price and quantity.
• Elasticity: responsiveness of demand or supply to price changes.
• Price controls: ceilings (shortages) and floors (surpluses) distort markets.

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