10. 11. 12. 13. 14. 15. . The production possibilities frontier assumes that the level of technology varies when applying the model. Excess demand in the market will cause the price of a product to decline. Demand is measured on the vertical axis and supply on the horizontal axis. A change in quantity demanded is a movement along the same demand curve. Microeconomics focuses on how the total economic activity of individual micro units will affect the economy. A point inside the production possibilities frontier represents an economy that is utilizing resources efficiently. An increase in consumer income will affect the supply of product A