Microeconomics

Microeconomics
See also
Free competition Economics Factors affecting demand Market dynamics Capitalism Economic environment Adam Smith Market mechanisms Consumer

Microeconomics - next to macroeconomics branch of economics. Microeconomics focuses on choices made by households, companies, government. Decisions made by them and their behaviors are affecting supply and demand of products and services. Microeconomics draws attention to connections and interactions between households, companies and government and how they affect each other.

Study of microeconomics

Microeconomics is involved in several topics like:

• economic model of supply and demand - how price is determined in a market,
• information system - how it affects economy and individuals decisions,
• labor - examines workers as suppliers of work and employers as people who set demand on work, their interaction and meaning of human capital,
• game theory
• elasticity,
• production and costs
• monopoly, oligopoly and other market forms.

Microeconomics issues includes factors that affect supply and demand, how prices are set on different markets, connections between elements of market, factors that determine customer's choices, behaviour of producers and customers.

References

• Bowles, S. (2009). Microeconomics: behavior, institutions, and evolution. Princeton University Press.

Author: Monika Stempień