Microeconomic Theory

Microeconomic theory studies how individuals and businesses make choices about buying, selling, and producing goods and services. It examines how these choices are influenced by prices, resources, and incentives, aiming to understand how markets function and how supply and demand interactions determine prices. The theory also explores concepts like consumer preferences, production costs, and market competition. Essentially, it provides a framework for analyzing the small-scale economic decisions that collectively shape the broader economy, helping to explain how resources are allocated efficiently and how market outcomes are reached.