Definition of microeconomics

Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions between these individuals and firms in markets. It focuses on the economic choices made by individual consumers, producers, and workers, as well as the factors that influence these choices, such as prices, wages, and competition. Microeconomics also examines how these individual decisions and interactions affect the overall economy.

Microeconomics is the study of the behaviour of individual entities, such as households, firms, and individuals, in decision-making and the allocation of resources. It focuses on the interactions between these entities within markets and the factors that determine market outcomes, such as prices, quantities, and market structure. Microeconomics examines how these entities make decisions in the face of scarcity and how those decisions affect the economy as a whole.