ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Microeconomics is a logical starting point for the study of economics. This reading focuses on a fundamental subject in microeconomics: demand and supply analysis. Demand and supply analysis is the study of how buyers and sellers interact to determine transaction prices and quantities.

Detailed explanation-2: -Little-picture microeconomics is concerned with how supply and demand interact in individual markets for goods and services. In macroeconomics, the subject is typically a nation-how all markets interact to generate big phenomena that economists call aggregate variables.

Detailed explanation-3: -In microeconomics, supply and demand is an economic model of price determination in a market.

Detailed explanation-4: -Supply-and-demand analysis may be applied to markets for final goods and services or to markets for labour, capital, and other factors of production. It can be applied at the level of the firm or the industry or at the aggregate level for the entire economy.

Detailed explanation-5: -The demand curve shows the quantities of a particular good or service that buyers will be willing and able to purchase at each price during a specified period. The supply curve shows the quantities that sellers will offer for sale at each price during that same period.