This week, the course shifts from a focus on macroeconomics to an exploration of microeconomics. While macroeconomic indicators reflect business trends, as well as the effects of government regulation, at the national level, microeconomic indicators relate to business activitiesat the regional and local levels. Thislecture examinestwo key microeconomic indicators, Supply and Demand, explaining how they reflect the relationshipbetween the production decisions of the sellers and the needs and preferences of the buyers in the marketplace. Arelatedtopic that is also covered in this lecture is Market Equilibrium. This is defined as the point where demand for and supply of a particular product or service meet. Just like supply and demand, the point of equilibrium is constantly shifting and changing. We will explore how an understanding of these changes and an ability to track the patterns of supply anddemand in the marketplacefor your industry can benefit you as a business leader.