ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The part of economics that deals with single factors (such as supply and demand) & effects of individual decisions
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The part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
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The effects of psychological, cognitive, emotional, cultural & social factors on the economic decisions of individuals and institutions.
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The application of statistical methods to economic data in order to analyze economic relationships.
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Detailed explanation-1: -Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
Detailed explanation-2: -Consumer behaviour, profit maximization, market mechanism all come under the study of microeconomics.
Detailed explanation-3: -Microeconomics studies the implications of individual human action, and is key to a person’s financial health.
Detailed explanation-4: -Demand and supply analysis is the study of how buyers and sellers interact to determine transaction prices and quantities. As we will see, prices simul-taneously reflect both the value to the buyer of the next (or marginal) unit and the cost to the seller of that unit.