ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -By studying the mechanisms behind how these decisions are made, microeconomics enables us to understand concepts such as how prices are determined, what factors impact our decision to purchase goods, and how businesses can allocate their resources to increase efficiency.

Detailed explanation-2: -Microeconomics deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics.

Detailed explanation-3: -Both individual demand and market demand are related to microeconomics. Market demand is a micro concept because it refers to demand for an individual commodity.

Detailed explanation-4: -How is microeconomics used? Businesses use microeconomics to determine how many goods to produce or services to provide and at what price to customers. Their prices will depend on many factors, including the cost of resources and labor, and how much money customers are willing and able to spend.