Course: Managerial Economics

Topic: Summary Week One

Professor Subhashish Gupta

The material covered in Week 1 can be split into two parts.

In the first part we introduced you to the subject matter of Economics, the
distinction between Microeconomics and Macroeconomics, the importance of
Microeconomics for managers and the relationship between Microeconomics
and Managerial Economics. Further, we discussed features of modern
economies such as high degrees of specialization and a dichotomy between
consumption and production. We ended with a discussion on what are the
functions of an economy and how markets help to achieve these: a simple model
of the choices confronting any economy rounds of the discussion.

The second part started the discussion on how consumers and producers
behave in a market and the determination of prices and quantities. We started
by describing the behavior of consumers through the demand curve and
went on to talk about the factors that might influence demand.

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