Advertisement

Give Reason Or Explain the Following Statement: Micro Economics is Also Known as Price Theory. - Economics

Question

Give reason or explain the following statement:

Micro economics is also known as price theory.

Solution 1

Yes, Microeconomics is also known as price theory.

Reason: Microeconomics is primarily concerned with price determination of goods and services as well as factors of production. Therefore, it is also known as price theory.

Solution 2

We know that in microeconomics we study the behaviour of individual economic units such as the consumer and the producer. The basic aim of such a study is to determine the prices (in the commodities and factor markets). It is for this reason that microeconomics is also known as the price theory.

  Is there an error in this question or solution?
Advertisement

APPEARS IN

 Micheal Vaz Solution for Micheal Vaz Class 12 Economics (2019 (Latest))
Chapter 1: Introduction to Micro Economics
Exercise | Q: 2.1 | Page no. 6
 2017-2018 (March) (with solutions)
Question 2.2.6 | 2.00 marks
 2010-2011 (March) (with solutions)
Question 2.2.6 | 2.00 marks
Advertisement
Give Reason Or Explain the Following Statement: Micro Economics is Also Known as Price Theory. Concept: Micro Economics - Price Theory.
Advertisement
Share
Notifications

View all notifications
Login
Create free account


      Forgot password?
View in app×