Question

explain the feature of microeconomics

Answer 1

Dear student,

Features of Microeconomics
1) Microeconomics deals with. economic issues related to small economic units: an individual firm, an individual household or an individual consumer.

2) Microeconomics is basically concerned with determination of price in the market. Accordingly, it is often called as 'The Theory of Price'.
3) Study of microeconomics assumes that macro variables remain constant. Thus, it is assumed that the general price level is constant while we are studying determination of price in the individual market.

4)Principal components microeconomics are:
(a) Theory of Consumer Behaviour, (b) Theory of Producer Behaviour, (c) Theory of Price.

Regards