Sunday, 18 December 2016

Microeconomics

microeconomics


Microeconomics - also known as price theory or value theory, is part of economics. It deals with the "smaller" participants, such as households and companies in the market.


If so, everyone who lives in their own household is active in his micro-economy.

The main focus of the microeconomy is:




  • the consumption and distribution of scarce resources and goods by supply and demand on the market

  • how much income households save, what part do they spend and how this relation changes with rising or falling incomes

  • as changing the households their purchasing behavior with falling or rising incomes

  • up to which amount buys a household a particular product? How many additional units of a product that has been consumed add an additional benefit to the budget?


Microeconomics works primarily with the simple model of the economic cycle, ie the households offer companies the factors of production (labor, capital and land) and ask at the same time produced goods and services offered by the company after.





Articles in Category Microeconomics



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