Economics is a social science that studies the production, distribution, and consumption of goods and services. It focuses on how people allocate resources to maximize their satisfaction, or utility. Economics studies both microeconomic and macroeconomic phenomena such as inflation, unemployment, taxation, and international trade.

Microeconomics is the study of individual households and businesses and how they interact with one another in the marketplace. It examines the behavior of small economic units like consumers and firms, and how they interact in markets to determine prices and quantities of goods and services. Macroeconomics, on the other hand, is the study of the economy as a whole. It examines the behavior of aggregates like total output, total employment, and the overall price level.

Supply and demand are economic concepts that refer to the relationship between the quantity of a good or service that producers are willing to supply and the quantity that consumers are willing to demand. Supply refers to the amount of a good or service that producers are willing to make available at a particular price. Demand is the amount of a good or service that consumers are willing to buy at a particular price.