Definition, Meaning & Synonyms

microeconomics

Noun

/ˌmaɪ.kroʊ.ɪˈkɑː.nɒ.mɪks/

Definition

Microeconomics is the branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources.

Examples

Microeconomics helps us understand how consumers make choices about purchasing products.
By studying microeconomics, businesses can set prices that optimize their sales.
Understanding microeconomics is essential for analyzing market trends and consumer behavior.

Meaning

It focuses on the supply and demand of goods and services and how these affect prices, production, and consumption at a smaller scale, such as within a particular market.