Microeconomics | Meaning of Microeconomics | Components of Microeconomics | Economics

The word micro derived from the Greek word "micros" which mean small. Hence microeconomics deals with the study of small economics units  i.e an individual producer, an individual consumer, an individual firm, an individual industry, an individual market.

Microeconomics makes a speciality of the moves and behaviors of households and organizations. Microeconomics indicates the fundamental float of cash

Components of Microeconomics:

• Theory of consumer behavior: 

       Under there we discuss:

           a) Utility analysis (cardinal utility).

           b) Indifference curve(ordinal utility).

           c) Theory of demand.

           d) Elasticity of demand.

• Theory of producer behavior:

           a) Production function .

           b) Cost.

           c) Revenue.

           d) Producer equilibrium.

           e) Market. etc

• Theory of price:

How price are determined in the market.