Microeconomics

MICROECONOMICS EXPLAINS HOW AND WHY THESE UNITS MAKE ECONOMIC
DECISIONS.
1.1 The Themes of Microeconomics
1.2 What Is a Market?
1.3 real versus nominal Prices
1.4 Why Study Microeconomics?
What does include?
consumers, workers, investors, owners of land, business firms

THE ROLLING STONES ONCE SAID:
“YOU CAN’T ALWAYS GET WHAT YOU WANT.”
microeconomics Branch of economics that deals with the behavior of individual economic units—consumers, firms, workers, and investors—as well as the markets that these units comprise.
macroeconomics Branch of economics that deals with aggregate economic variables, such as the level and growth rate of national output, interest rates, unemployment, and inflation.

A MARKET IS THE COLLECTION
OF BUYERS AND SELLERS THAT, THROUGH THEIR ACTUAL OR POTENTIAL INTERACTIONS, DETERMINE
THE PRICE OF A PRODUCT OR SET OF PRODUCTS.
A perfectly competitive market has many buyers and sellers, so that no single buyer or seller has any impact on price. Most agricultural markets are close to being perfectly competitive. For example, thousands of farmers produce wheat, which thousands of buyers purchase to produce flour and other products.
As a result, no single farmer and no single buyer can significantly affect the price of wheat