What's microeconomics? Explain it's uses/importance.
Microeconomics... The term'micro' seems to have derived from Greek word 'mikros' meaning small. So microeconomics deals with the analysis of individual economic units and small group of individual economic units and their interaction with individual economic variables. For example: individual consumer, business firms, industries, price of a commodity, output of individual firm and so on. It studies how the different units carry out their economic activities, how they attain the level of maximum satisfaction and how they reached the point of equilibrium. It has the objective of studying principles, policies and problems relating optimum allocation of limited resources. According to K. E Boulding, "Microeconomics is the study of particular firms, particular households, individual price, wages, incomes and particular commodities". It tries to explain how an individual consumer distributes his/her disposable income between or among the goods and...