what is microeconomics microeconomics is a branch of Economics that deals with the behavior of individual Market participants and the resulting interactions among these individuals and markets [Music] microeconomics is the study of how individuals make decisions about resources goods and services for themselves it is the study of how individual markets work and is concerned with the behavior of individual consumers and producers and studies how economic agents interact in a particular Market microeconomics is typically divided into two parts microeconomic Theory and applied microeconomics microeconomic Theory examines the behavior of individual agents in a market specifically the effect that prices have on those decisions applied microeconomics on the other hand uses this knowledge to analyze how these markets work in practice in contrast macroeconomics focuses on the aggregate behavior of all markets in an economy it is concerned with things like inflation unemployment and GDP some basic concepts that you should learn in microeconomics are demand the amount of a good or service that people are willing and able to buy at each price supply the amount of a good or service that producers are willing and able to sell at each price elasticity a measure of responsiveness and demand for a good or service when there is a change in its price market equilibrium a situation where Supply equals demand for any particular good or service so there is no tendency for prices to change unless something affects either Supply or demand [Music] microeconomics can be used to answer questions like why some people are rich While others are not why do some countries grow faster than others what effect does government policy have on household budgets the answers to these questions have implications for many areas in society including health education development public policy business management marketing and Finance in conclusion microeconomics is one of the most important topics in economics it deals with the economic decision making at an individual and Industry level microeconomics provides a framework to help people make choices when they have limited resources available and helps us understand how production possibilities are determined foreign [Music]