MICRO ECONOMICS Microeconomics is that part of economic analysis which studies decisions of individuals and firms in economy.

It is microeconomics that tell us how a free market economy with its millions of consumers and producers work to decide about allocation of productive resources among thousands of goods and services. It tells us how goods and services produced are distributed among various people for consumption through price mechanism. It is like looking through a microscope to focus in small parts of economy. In it we study demand of one consumer for a good and from there we go to derive market demand for that good. In microeconomics we study following issues.

1 Individual consumers behavior. 2 One products price 3 One individual consumers demand and his income 4 Study of individual firms location, cost, revenue, and profit 5 Remuneration of individual factors of productions