Oct 22, 2025

Microeconomics

• Microeconomics is the branch of economics that focuses on the behavior of individual consumers and industries by the decisions they make regarding the allocation of limited resources. It focuses more on supply and demand, price determination, consumer choice, and overall how businesses respond to changes in the market! (I know that was a lot but I promise its much more simple than it sounds!)

How do I remember it?

• Think of Microeconomics as "small-scale interactions." It deals with individual parts of the economy rather than the whole economy. 

Real world example

• You go to a fruit market. Apples are $1 each.

If the price goes up to $3, you might buy fewer apples or none at all.

If the price drops to $0.50, you might buy more.

At the same time, the seller watches what customers do:

If a lot of people want apples, they might raise the price.

If no one is buying, they might lower the price.

That’s microeconomics! Small-scale choices and how they affect prices and markets!