Microeconomics is the study of the economic activities of individuals and firms. In other words, it examines how individuals and companies within an economic system behave. Specifically, it examines how supply and demand affect the prices of goods and services and how consumers react to those prices. Using microeconomic theories and topics (e.g., law of supply, law of demand, and market price equilibrium), answer the following questions: List three products or services you would give up if the price increased by 10 percent. Why would you give up these products or services? Would you give up social media applications such as Twitter, Facebook, or Instagram if the companies responsible for them started charging for their services? Why or why not? Pretend you own an ice cream shop and the price of milk increases by 20 percent. How will you adjust to the increased costs to manufacture your ice cream

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Applying Microeconomics to Daily Life 1 Sacrifices due to a 10 price increase Nonessential streaming ... View the full answer