Question

Define the concept of micro economics.

Answer 1

Microeconomics deals with the issues pertaining to individual economic units, basically consumers and firms, that interact in the market of different goods and services. Here, we study how consumers make their consumption choices and decisions given their money income and the prices of goods and services. We analyse how the firms decide how much to produce and by different input combinations and how prices are determined in both the commodity market and the factor market based on the demand and supply analysis.