Microeconomics

Scarcity

Limited resources compared to people's unlimited wants.

Trade-offs

Giving up one thing to get something else.

Utility

The satisfaction or benefit gained from consuming a good or service.

Demand

The amount consumers are willing and able to buy at different prices.

Supply

The amount producers are willing and able to sell at different prices.

Elasticity

How much supply or demand changes when prices change.

Incentives

Rewards or consequences that influence economic decisions.

Perfect Competition

A market with many buyers and sellers offering identical products.

Monopoly

A market controlled by one seller with little or no competition.

Oligopoly

A market dominated by a small number of large sellers.

Negative Externality

A harmful side effect of an economic activity that affects others (ex: pollution).

Market Failure

When a market fails to distribute resources efficiently.