PART2

Microeconomics: Business and the Consumer

The interaction of supply and demand is the heart of the market economy. Part 2 describes in detail how the mechanism of supply and demand results in your getting the best price for your purchase. It is price that is almost always the final determination for your purchase, is it not?

The market would not exist if it were not for two key players: the consumer and the firm. Each wants to get the best deal. You might have had the experience of shopping at an open market. Lively bargaining continues until a price and quantity are reached on which both you and the seller agree. Each agent acts in his or her own best interest.

To get the most satisfaction from the purchase, the consumer wants just the ...

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