B001 review questions

 Microeconomics-The study of small economic units, such as individual consumers, families and businesses  Economics-Analysis of the choices people and governments make in allocating resources. o Supply: Amount of goods and services for sale at different prices.  Low supply of gas = higher prices. o Demand: Willingness and ability of consumers to purchase goods and services at different prices.  10 people want to buy your house.  Supply Curve- shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand.  Demand Curve- shows the amount of product buyers will purchase at different prices. o Driven by variety of factors like competition, price, larger economic events, and consumer preferences. o Economics balance of what we want and what we can afford.  A change in overall demand, shifts to a new demand curve  Supply and demand curves meet at the equilibrium price.  Buyers and sellers make choices that restore the equilibrium price.  Macroeconomics-Issues for the entire society