Tuesday, July 22, 2014

What is micro economics?

What is micro economics?
Micro economics is the study of individual units of economics. It means it is the study of a particular firm, individual’s savings, individual investment, individual demand and individual supply etc. it finds the market equilibrium point where the three types of economic variables can be satisfied. It means, it finds the equilibrium point of demand and supply where the consumer of a particular product can be satisfied by using his limited resources. And at the same time it finds the point where the producers of particulars products can be satisfied selling their products in a satisfying profit. As well as, it finds the equilibrium point where the owner of resources can be satisfied.          So, we can conclude micro economics as a study of small or individual factors of whole economy. It is like a study of a tree, not whole jungle.

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