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Microeconomics is refer to the economics that deal with individual or single firm.

Microeconomics-Microeconomics Vs Macroeconomics

Economics is the field that has many terms and concepts.There are two major field of economics.i.e. Macroeconomics and Microeconomics.Microeconomics is the branch of economics that deals with individual behaviour,decisions of individual firms and price of specific goods.

While Macroeconomics deals with economy as a whole including national income,inflation ,gross domestic product and so on.So macroeconomics deal with large while microeconomics deal with small aspects of the economy.Microeconomists collect the data ,analyze it and then compare it and take an statistical record.While macro take the record on the whole and then decisions are made on that basis.Macroeconomics deal with the matters like inflation,unemployment and so on.

Microeconomics-The Concept of Supply

Supply and demand are collectively called market forces.Supply and demand manipulate your prices that’s why they are called market forces.As consumer varies inthier tastes and prefrences and also in the buying behaviour.So demand and supply of market move up and down depending on the consumer demand.Producers have to supply less or more product depending on the demand of the product.

Factors that effect supply are the price of product,the wages paid to the worker,the cost of capital,the state of production,producer expectations about future price and on the taxes paid to the government.Law of supply states that there is positive relationship between prices and quntity supplied.As quantity increases supply increases and vise versa.

Microeconomics-Microeconomics &Types of costs

Microeconomics deals with economy and business sector.Business incurred both cost and profits.Now the question arises what cost is? So cost is the negative cash flow or in other terms we say that it is the cash going outside the organization.The point where there is no profit no loss it means that cost will be same to the price of that commodity

We have different types of costs like Real costs, nominal costs, economic costs, implicit costs, explicit costs and opportunity costs and so on.Nominal costs in that cost that is measure in monetary or cash terms only.like cost of raw material or labour.Real costs is that is not measure in monetary terms like consumer waiting for the product.economic cost is the cost of factors of factors of production.So there are different types of costs in economics.

Microeconomics-Microeconomics & Market Supply Curve

Microeconomics is the branch of economics which deals with individual behaviour, individual decision making and for the single firm and so on.Supply and demand are the two forces that manipulate the prices of market.There are certain factors on which supply and demand are based

Individual supply curve is the curve between the price and quantity supplied.We say that this will be the practical implication of marginal principle.Hence individual curve is based on the single firm while market curve is the relationship between price abd quantity of all the firms.It states that more prices when there is more quantity supplied.Here the queestion arises why the supply curve is positively sloped? So answer will be that because they are directly propotional to one another.

Microeconomics-The Concept of Perfect competition

In monopoly you have complete control over the prices of the commodities.You can increase or decrease prices as you are the single firm in the market.So you can enjoy monopolistic edge in the market.While in perfect competition you have no control over the price,Price is set through market forces.

Market forces are demand and supply.When pices are decrease commodity demand are incresed.so they are negative relation in them.while supply has postive relationship.if your actual performance is same likeexpected then you get revenue.In perfect compition you many buyers and many sellers in the market.perfect knowledge is there.andmarket have homogeneous commodities so you can not mainpulate the price.

Microeconomics-Concept Of Demand

A market has different buyers and sellers that differ from one another in their purchasing power and buying pattern.Demand and supply are two market forces which effect the market and effect the market very much.

Demand is purchasing power of the customer.The different things that effect demand are the price of product,consumer income,substitute goods,complementary goods.The amount of goods that consumer to buy is known as quantity demanded.Law of demand states that other  factors remaining the same when quantity demanded increases the price of that product decreases.And when quantity demanded decreases the  price of product increases.Hence there is negative relation between price and quantity,a

Microeconomics-Microeconomics and Market Equilibrium

A situation in which the quatity demanded equals to the quatity supplied at the prevailing market price.The point where these two slopes intersects with one another is called market equilibrium.Where demand and supply intersects with one another that point is called market equilibrium.Demand has two characteristics one is willingness to buy and second is the ability to buy.

If a consumer have willingness not ability to purchase then it is called wish or want.Ability to purchase is called income.The most important determinant that effect demand is the price of commodity.The supply curve is positively related while the demand curve is negatively related.The point at where both is the point of breakeven for the firms or individuals where there is no loss or profit prices will remain the same.

Microeconomics-Principles Of Microeconomics

As each and every subject is based on some principles.These principles work as building blocks for a subject and area of study.Economics is also based on some principles.Like marginal principle,Principle of scarcity,principle of opportunity cost,spillover principle and reality principle.Marginal principle states that how firm maximize its profits by choosing a quantity at which price is equal to marginal cost

Principle of scarcity states that to get equilbrium between supply and demand you have to rise the prices of scares products.The opportunity cost is something is what you sacrifise to get the next best option.Spillover principle states that you are effected by other person decisions.Reality principle states that nominal income minus inflation is equal to real income.