05:13
pranky
Study of the economic behavior of individual units of aneconomy (such as a person, household, firm, or industry) and not of the aggregate economy (which is the domain ofmacroeconomics). Microeconomics is primarily concerned with the factors that affect individual economic choices, theeffect of changes in these factors on the individual decisionmakers, how their choices are coordinated by markets, and how prices and demand are determined in individual markets. The main subjects covered under microeconomicsinclude theory of demand, theory of the firm, and demand for labor and other factors of production.
Micro means small. Thus, micro economics analyses individualistic behaviour. It studies an individual consumer, producer, price of a particular commodity, household, etc.
According to Prof. K. E. Boulding, "Micro Economics is the study of particular firm, particular household, individual prices, wages, incomes, individual industries and particular commodities."
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