Microeconomics

Micro economics (often also written microeconomics) is the branch of economics that studies how individuals and corporate customers as well as determination of market prices and quantities of factor inputs, goods and services bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which will determine the price and how prices, in turn, determine the supply and demand of goods and services. [1] [2] Individuals who do a combination of consumption or optimal production, together with other individuals in the marketplace, will establish a balance in the macro scale; with the assumption that all else equal (ceteris paribus).

The opposite of the micro economy is the macro economy, which discusses the overall economic activity, especially regarding economic growth, inflation, unemployment, economic policies related to [3], and the impact of various government actions (eg changes in tax rates) on these matters

Overview

One of the goals of microeconomics is to analyze market mechanisms that establish relative prices of products and services, and the allocation of limited resources amongst many alternative uses. Microeconomics analyzes market failure, where markets fail to produce efficient results and explain the theoretical conditions needed for a perfectly competitive market. Research areas are important in microeconomics, including a discussion of general equilibrium (general equilibrium), the market situation in asymmetric information, choice under uncertainty, and economic applications of game theory. Also considered is the elasticity of products in the market system