Module Overview:
The fundamental principles of resource allocation are considered through the price mechanism in a market economy. The market forces of demand and supply, market equilibrium and disequilibrium, and elasticity form the core of this section.
Microeconomics is the study of particular markets and sections of the economy (rather than the economy as a whole). It is concerned with the economic factors that affect choices and the effects of changes in these factors on decision makers. Microeconomics studies the economic behaviour of individuals, households and fi rms in relation to these factors.