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Introduction and Importance of Microeconomics
Micro as a term means small. Thus, microeconomics studies individualistic behavior or it studies an individual consumer, producer, household, price of a particular commodity, etc.
According to Prof. K. E. Boulding, "Micro Economics is the study of a firm, particular household, individual prices, incomes, wages, individual industries and particular commodities."
This is a branch of economics that deals with the market behavior of individual consumers and firms in order to understand the decision-making procedure of firms and households. It considers with the interaction between individual buyers and sellers and the factors that control the choices made by buyers and sellers. In particular, microeconomics majorly focuses on patterns of supply and demand and the determination of price and output in individual markets.
Subject Matter or Scope of Microeconomics
Micro Economics is dealing with the following topics:-
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