This textbook describes modern microeconomics and how it can explain the world and show its hidden order, the price system, as well as how incentives matter. It discusses how markets generate cooperation from people across the world, how prices act as signals and coordinate responses to changes in economic conditions, and how profit maximization leads to the minimization of industry costs. It focuses on the core idea of supply and demand as the organizing principle of economics and includes business examples and topics throughout, as well as a chapter on the stock market. This edition has a new chapter on moral hazard and adverse selection; reorganized chapters on game theory, with new material and applications on the topic, a new chapter on oligopoly and game theory, and new discussions of price matching games and consumer loyalty programs; a new version of the chapter on monopoly; a separate chapter on monopolistic competition and advertising; and online videos. Annotation ©2016 Ringgold, Inc., Portland, OR (protoview.com)