Question

Describe this 3 MICROECONOMICS Ideas/concepts.

1. Supply and demand

2. Opportunity cost

3. Market Structure

Explain and compare with real-world examples. Explain how these ideas may have made you think about the world differently or at least how they might have given you a different perspective on socio/economic/political issues (or reinforced previous thinking).

Answer 1

& Supply and Demondi- There is a connection betuleen the quantity of a Product that manufactures klant to market at different Prices and the quantity that buyers want to purchase H is the primary paradigm used in economis theogey of market determination. A commodity's porce is detem. - ined by a market's relationship betinleen supply and demand Supply refers to the quantity at available. Request or Demand refers to the number of Consumers who want these products, Whena Fooduct scepply increoss, ca products Price decrease and the product's demand will grow because it prevents money. When drough occurs, the available oranges are very less, as the supply is very less, the demand for the fruit increases results in increase in

the price, pakistan exports onion to India India largely depends on the pakistan for onion and viceversa for another product. As a result of Indo-Pak tensions across the border Pakistan Hopped exporting onion to India. As a result. Within no time. shortage occurs for India, me Supply of onion falls down, the demand for the Same valses to peaks. As a result the cost of the onion raised almost 5 times to ts orginal Cost in normal equilibrium time, so, by this I understood that not only natural colamities. even political factors plays a coucial role in. supply and demand of the good. 2) opportunity cost. It is the choogong a particulas choice is the benefit of the most desirable

Choice among those od etogen, it is the relationship betuleen Scarchy and choice. A student preoffered to study for his final exam. rather than watching football of his favorite team. Here cost of the latching football and enjoying is the cost of the opportunity cost If you struggle today giving up your comfort zones. Then you will be happy in the future. 3) Market structure It Refers to the corporate or Competitive market characteristics that characterize the dynamics of competition and the market pricing strategy. so, it can be. defined as the number of companies selling the same goods and services on the marked

and the composition of which is decided on the best -s of the competitiveness that prevail in that Sector there are totally four types of Market • structures are available they are a perfect competition : 14 is a market structure Where a. homogenous commodity is sold by many businessese. Because there is independence of entry and ext and great Koorfledge, businesses Should produce regular income and competitive. Pressure will keep prices low. Example: In Agricultural markets, there are many farmers who sells same vegetables such as onion, carrot etc b Monopolistic competition: at is a market structure where a large number of small compants work with each other, wlithout perfed competition though the companies market similar but

Slightly distiot goods in monopolistic compelition It offers them a degree of market porter, allerling them to charge tigher prices within a given range. Example: Cereals, several brands such as. hucky charms, froot hoops, Apple Jacks? exists. These different types of brands tastes 1ttle. different, but at end of the day they're all breakfast cereals at the end of the day. c) Oligopoly : at lies betuleen Pure monop dy and. monopoly competition, where teuler sellers comme the market and control the produc's Price Acample. There are many restaurants but Med KFC, SUBWAY dominates the whole Us Market d) Monopoly. It is a market structure where. entire market is dominated by a single companies The organization has the highest level of

Market Pohler in this situation, as there are no options for customers. As a consequence, monopolies! often lower output to raise Prices and earn more. profit. Example: - Con Edison is the only US. supplies. of electricity, gas and water so, they have only one company. They have complete martel Control because they are the only company that provides us with electrichy is with electricity, gas and nates. s other examples include Netflix, Amazon etc. As it has no competition in the market, pays. good amount of Hades to the government and Provides good service to the consumers