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What is Microeconomics?
Microeconomics is a division of economics that deals with decision making of a particular or a single individual, or a firm, or an industry or allocation of all the resources. It applies to all markets of goods and services and takes care of all individual issue and economics concerns.
In simpler words, microeconomics is a study of choices that a person makes. It depends on all factors that might have influenced to make those choices and how that decision affects market with price, demand and supply.
Demand in Microeconomics –
It deals with the following:
- Quantity
- Behaviour
- The correlation between quantity demanded and price and keeping other aspects stable.
Law of demand shows that “the increase in price, will decreases demands and vice- verse”. The factors that affect demands are income and power of purchasing of an individual, buyer anticipation, demographics, preferences and prices.
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