3 Review(s)

Microeconomics is a branch of economics that studies how individuals, households and firms and some states make decisions to allocate limited resources, typically in markets where Goods or services are being bought and sold. It examines how these decisions and behaviours affect the supply and demand for Goods and Services, which determines prices; and how prices, in turn, determine the supply and demand of Goods and Services. One of the objectives of Microeconomics is to analyze market mechanisms that establish relative prices amongst Goods and Services and allocation of limited resources amongst many alternative uses. It analyzes market failure, where markets fail to produce efficient results, as well as describes the theoretical conditions needed for perfect competition.