The Complete Microeconomics Course: Theory & Practice

Understand the difference between demand and desire in microeconomics, where demand requires willingness and purchasing power, while desire is just willingness, illustrated by bread and a BMW.

Learn the difference between market demand and individual demand in microeconomics. See how one household's willingness to buy at different prices compares to the total demand of all households.

Learn how the demand curve shifts when non-axis factors like income, fashion, taste, weather, or population change, while price changes move you along a single demand curve.

Supply is produced and sent to the market for sale at a specific price. Stock consists of goods produced but not yet in the market, with no price set.

Rise and fall of supply occur with no price change; rise means higher supply, fall means lower supply. Non-price factors like more producers or new technology shift the supply curve.

Learn the difference between movement along the supply curve, driven by price changes, and shifting of the supply curve, caused by non-price factors like technology or new producers.

Explore how five factors shift the supply curve—input prices, technology, substitute goods in production, number of firms, and expected future prices—and how each changes supply left or right.

Unitary elastic demand occurs when price and quantity demanded change by the same percentage, yielding an elasticity of one, with a negative relationship between price and demand.

Explore perfect inelastic demand, where price changes do not affect quantity demanded, yielding a zero elasticity and a vertical demand curve, with salt as a real-world example.

Explore properties of indifference curves, including downward slope, convexity to the origin, non-intersection, and higher curves signaling greater satisfaction.

Explore marginal cost, the extra cost of producing one more unit, and its formula as change in total cost divided by change in quantity, denoted by M.S., including concise example.

Learn to calculate marginal cost by dividing the change in total cost by the change in quantity. Plot the marginal cost graph by mapping MC values against quantity.

Learn to construct the total cost graph by plotting total cost on the y-axis against output on the x-axis and joining the points to form the total cost curve.

Explore how total revenue, average revenue, and marginal revenue are defined and calculated under perfect competition, linking revenue to price and quantity.

Explore how firms in perfect competition decide output by equating marginal revenue and marginal cost. Maximize profit where MC intersects MR from below, with price, AR, and MR equal.

Explain how abnormal profit arises under perfect competition when average revenue exceeds average cost, with MC = MR determining equilibrium output and a shaded area representing profit.

Illustrates abnormal loss under perfect competition when average fixed cost equals average revenue, showing marginal cost equals marginal revenue and the shaded loss area.

Explore why firms shut down under perfect competition when average fixed cost exceeds average revenue, using mc, afc, and avc analysis.