Answer the following questions with your own words. Support your answers with relevant examples.

1. What is the difference between microeconomics and macroeconomics?

2. What is law of demand? What are the factors which leads to increase or decrease in demand?

3. What is law of Supply? What are the factors which leads to increase or decrease in supply?

4. What is elasticity? Explain elasticity of demand and supply.

5. What is the importance of market Equilibrium?

6. What is law of diminishing marginal utility?

7. What role does the government play in regulating the market economy?