Microeconomics

Description

Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. These individual decisions, in aggregate, affect the demand and supply of goods and services throughout the entire economy. One of the most commonly analysed topics in microeconomics is the model of supply, demand and equilibrium. Under this model, the producers and consumers of a good determine how its price and quantity is traded between them. In a free market, the price of goods will vary until it hits an equilibrium point, which is defined as the point at which the total quantity of goods demanded equals the quantity of goods supplied.
Microeconomics also examines how the decisions of individuals impact specific industries. For example, economists studying at the micro level might be interested in discovering how current consumer demand is affecting the well-being of the oil industry. Another basic principle of microeconomics is the “”theory of the firm.”” This studies the actions of businesses as they strive to increase their profits.
This book covers a variety of topics on the subject and would be beneficial to students or anyone eager to increase their knowledge of microeconomics.