Sahil Kharb b1tfury

## Lesson1.md

      
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                Notes of Principles of Microeconomics MIT 14-01c
              
          
    Title: Introduction to Microeconomics


Microeconomics is all about scarcity. It is about how individuals and companies make decisions, given that we live in a world of scarcity.
Two actors in the economy:  Consumers and Producers
Consumers have limited(are constrained by) wealth. So, they maximize utility subject to a budget constraint.
Producers maximize profits(pi) subject to consumer demand and input costs.
3 fundamental questions of microeconomics:

What goods and services should be produced?
How to produce them?


Who gets them?