Microeconomics is the branch of economics that studies the behavior of individual economic agents, such as households and firms, in making decisions regarding the allocation of scarce resources and the interactions among these agents in specific markets. Its core focus is on understanding how supply and demand determine prices and quantities in markets for goods and services, and how these prices allocate resources. Key concepts include consumer theory, producer theory, market structures and the analysis of market failure, often seeking to understand the efficiency and equity of these individual outcomes.
- Teacher: Annie Joseph