Micro-economics is that part of economic analysis which studies decisions of individuals and firms in economy. Microeconomics is the study of specific individual units, particular firms, particular households, individual prices, wages, income, individual industries, particular commodities etc.
In the words of Samuelson:
"In microeconomics we examine among other things how individual prices are set, consider what determines the prices of land and capital and enquire into the strength and weakness of market mechanism."
Microeconomics explains how consumers and producers take their decisions regarding allocation of productive recourses among various goods and services.
In the words of Samuelson:
"In microeconomics we examine among other things how individual prices are set, consider what determines the prices of land and capital and enquire into the strength and weakness of market mechanism."
Microeconomics explains how consumers and producers take their decisions regarding allocation of productive recourses among various goods and services.
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