Principles of Microeconomics.

Economics is a subject that provides guidance on how to reconcile unlimited wants and limited resources. In general, it involves applying the concept of tradeoffs within a context where decisions occur through marginal analysis. As they engage themselves in this framework, students will encounter questions regarding the content, purposes, and processes of production in a market-based economy. Some will find answers to those questions as they ponder models of demand and supply. Those models are merely tools with which we can simplify reality and attain a better understanding of the nature of demand and supply. Readers will find discussions on how their purchases are sensitive to income, satisfaction, and prices. They will also learn how their employments generate revenue and profits while their employers respond to consumer wants and needs, seize or miss opportunities, and deal with market constraints. In addition, readers will gain additional insights into the relevance of microeconomics to areas such as labor markets, government regulations, market failures, public goods, and international trade.