ABSTRACT

This chapter briefly introduces the basic concepts of microeconomics. By explaining terms such as supply, demand, and market equilibrium that appear frequently in this book, we aim to prepare readers who have no economics background to understand all the economic aspects of electricity marketing. Readers are referred to Pindyck and Rubinfeld (1997) at the undergraduate level or Luenberger (1995) at the graduate level for more details. Later in this chapter, we summarize the history of the development of electricity markets.