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Micro Economics
Micro Economics is the branch of Economics which analyses the market behavior of individual consumers and firms. It focuses on the patterns of supply and demand and price and output determination in the individual markets.
500 Questions
Can a single indifference curve cross itself?
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a single indifference curve cannot cross itself.
What happen to price when supply is constant and demand increaes?
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prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
Why is it not possible to conclude that OPEC total revenue would increase if it were to cut its production does the elasticity of non- supply have any influence on how the price of crude oil changes?
Asked by Wiki User
OPEC acts like a monopoly on crude oil. They can cut production and decrease the supply of oil, thus raising the price, but this does not necessarily increase revenue. As the price increases, the demand decreases. The percentage change in quantity demanded in response to a one percent change in price, while holding all other factors constant, is called price elasticity of demand. If the price elasticity of demand is high, then the demand will decrease significantly as the prices increase, and revenue may not increase.
Is the effects of an increase in the minimum wage on the market for unskilled labor and youth unemployment macro or micro economics?
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