Tuesday, July 22, 2014

Micro economics as parallel equilibrium

Micro economics is a parallel equilibrium. Justify it .

= Generally, the subject matter of economy is divided into two categories viz; micro economics and macro economics. Micro economics deals with the analysis of small economics units of the economy and macro economics deals with the analysis of economy as a whole in aggregate firm. Here micro economics study individual form, individual household, particular market and markets equilibrium where consumers, producers and resource owners can be satisfied etc. to find the satisfying point of consumers, producers and resource owners it calculates equilibrium points. And, consumers, producers and resources owners are the part of an economy. Therefore, microeconomics economy is known as parallel equilibrium.

  In short, micro economics deals with particular firm, particular house hold, individual demand and supply not with general firms, general investments, general demand and supply etc. so it is known as parallel equilibrium.

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