Basic economics is the study of how societies allocate a limited amount of resources which can have alternative uses. Economics is broadly divided into two categories: microeconomics and macroeconomics. Microeconomics looks at individual markets within a larger economy. Macroeconomics looks at an entire economy. Each category can be broken down into subcategories, but for understanding basic economics it’s sufficient to know the two main categories.
An economy seeks to efficiently make use of its existing resources so that they can be of the greatest benefit to the most people. For goods and services that have a material value, an economy uses prices a guide for consumers and producers. Prices will rise when the value of something exceeds our ability to obtain it. For example, if a particular crop is affected by weather, its price will go up. It's not that the particular crop became more expensive to harvest, but it became more scarce. To ensure that as many people can enjoy the crop as possible, the price will rise. Conversely, if a farmer enjoys an abundant crop, consumers will generally pay less for it. The crop did not become less expensive to harvest, it just became more abundant. This illustrates one of the most fundamental principles of economics, the principle of supply and demand.