Modern Microeconomics

Modern microeconomics studies how individuals, households, and businesses make decisions about resource allocation, production, and consumption. It focuses on understanding market behavior, pricing, supply and demand, and incentives that influence economic choices. Using models and data, it examines how people respond to changes, such as prices or policies, to explain and predict economic outcomes. This field helps explain everyday economic activities and guides policymakers in designing strategies to improve efficiency and well-being while considering constraints and preferences.