Define or Explain the following concepts. 1) Micro Economics

Define or Explain the following concepts.

1) Micro Economics

ANSWER:
Microeconomics is the study of the behaviour of individual economic units, basically consumers and firms interact in the market of different goods and services. It analyses how consumers make their consumption choices and take decisions, given their incomes and prices of goods and services. Similarly, it analyses how firms decide how much to produce by applying different input combinations. It also helps in determining prices, in both the commodity and factor markets, based on the demand and supply analysis. Thus, microeconomics is a study that basically focuses on the behaviour of individual economic units.

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