What is Economics
Economics is the study of scarce resources that have alternate uses.
Microeconomics
The brand of economics that looks at the behaviour of individuals and businesses. In other words, it examines how consumers and businesses react to changes in variables. For example, how do consumers react to price changes and how does quality affect this decision making.
Consumer Surplus: Graph, Examples & How to Calculate
The consumer surplus is the difference between what the consumer is willing to pay, and what they actually pay.
Why Free Markets are Important
According to the Collins Dictionary, a free market is an economic system that allows supply and demand to regulate prices, wages, etc, rather than government policy. To be defined as a free market, government must not be involved at any point during the exchange. This means that there is no government intervention, whether in the form of subsidies, tariffs and quotas, or regulation.
