[Verse 1] When buyers meet sellers in the market square Price finds its balance floating in the air Demand curves slope down, supply climbs up high Where these lines cross, equilibrium lies Elasticity tells us how much we bend When prices shift, will spending defend? [Chorus] Micro-magic, supply and demand Marginal thinking helps you understand Maximize utility, minimize cost Game theory wisdom when competition's crossed Micro-magic, the manager's guide Economics working from the inside [Verse 2] Indifference curves map what consumers crave Budget constraints show what money can save Production functions turn inputs to goods Diminishing returns in all neighborhoods Fixed costs stay put while variable costs dance Marginal revenue gives profit a chance [Chorus] Micro-magic, supply and demand Marginal thinking helps you understand Maximize utility, minimize cost Game theory wisdom when competition's crossed Micro-magic, the manager's guide Economics working from the inside [Verse 3] Perfect competition makes price-takers all Monopoly power builds barriers tall Oligopoly players watch every move Nash equilibrium finds the groove Product differentiation breaks the tie Excess capacity makes profits shy [Bridge] Prisoner's dilemma tests cooperation Backward induction guides negotiation Externalities spill beyond the deal Pigouvian taxes make polluters feel Adverse selection hides the truth inside Moral hazard lets the careless slide [Verse 4] Price discrimination captures surplus neat Bundling strategies make packages complete Two-part tariffs split the payment flow Peak-load pricing when demand runs show Network effects build winner-takes-all Transaction costs decide make-versus-call [Chorus] Micro-magic, supply and demand Marginal thinking helps you understand Maximize utility, minimize cost Game theory wisdom when competition's crossed Micro-magic, the manager's guide Economics working from the inside [Outro] From auction theory to platform design Microeconomics draws the bottom line Signaling truth when information's scarce Management decisions need this microscope's parse
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