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Microeconomics Dictionary Definition

Microeconomics: The study of the operations of the components of a national economy, such as individual firms, households, and consumers.

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Dictionary definition of Microeconomics The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2004, 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.   More from Dictionary


Microeconomics: Investopedia

The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (e.g. coffee industry).

Investopedia Says: The field of economics is broken down into two distinct areas of study: microeconomics and macroeconomics. Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. People who have any desire to start their own business or who want to learn the rationale behind the pricing of particular products and services would be more interested in this area.
Macroeconomics, on the other hand, looks at the big picture (hence "macro"). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world. For example, people who study this branch of economics would be able to interpret the latest Gross Domestic Product figures or explain why a 6% rate of unemployment is not necessarily a bad thing. Thus, for an overall perspective of how the entire economy works, you need to have an understanding of economics at both the micro and macro levels.

Related Links:
Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more! Economics Basics From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone. Macroeconomic Analysis

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Investment information about Microeconomics. Copyright ©2000, - Owned and Operated by Investopedia Inc. All rights reserved.   More from Investment.


 Demand and Supply Model

The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). The graph depicts a right-shift in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new market-clearing equilibrium point on the supply curve (S).

The supply and demand

model describes how

prices vary as a result

of a balance between

product availability at

each  price (supply) and

 the desires price

(demand). The graph

depicts a right-shift in

demand from D1 to D2

along with the consequent

 increase in price and

quantity required to reach

 a new market-clearing

equilibrium point on the

 supply curve (S)


Related Topics:
  1. Aggregate Demand

  2. Aggregate Supply

  3. Economics

  4. Economy

  5. Equilibrium

  6. Gross Domestic Prodcut

  7. Keynesian Economics

  8. Law Of Demand

  9. Macroeconomics

  10. Neoclassical Economics


Shakespeare Said:

    "Nothing is either good

or bad, it is thinking which

made it so "   



Microeconomics : Britannica Concise Encyclopedia

Study of the economic behaviour of individual consumers, firms, and industries and the distribution of total production and income among them. It considers individuals both as suppliers of land, labour, and capital and as the ultimate consumers of the final product, and it examines firms both as suppliers of products and as consumers of labour and capital. Microeconomics seeks to analyze the market or other mechanisms that establish relative prices among goods and services and allocate society's resources among their many possible uses. See also macroeconomics.


For more information on microeconomics, visit

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Britannica information about Microeconomics Britannica Concise Encyclopedia. © 2006 Encyclopedia Britannica, Inc. All rights reserved.   More from Britannica


Microeconomics : Barron's Finance and Investment Terms

Study of the behavior of basic economic units such as companies, industries, or households. Research on the companies in the airline industry would be a microeconomic concern, for instance. See also Macroeconomics.

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Finance and Investment Terms information about Microeconomics. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.   More from Finance and Investment Terms.


Microeconomics : Houghton Mifflin Company

Economic analysis of particular components of the economy, such as the growth of a single industry or demand for a single product. (Compare macroeconomics.)

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Economics information about Microeconomics. The New Dictionary of Cultural Literacy, Third Edition Edited by E.D. Hirsch, Jr., Joseph F. Kett, and James Trefil. Copyright © 2002 by Houghton Mifflin Company. Published by Houghton Mifflin. All rights reserved.   More from Economics


Microeconomics : Word Net

Microeconomics is the branch of economics that studies the economy of consumers or households or individual firms.

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WordNet information about Microeconomics. WordNet 1.7.1 Copyright © 2001 by Princeton University. All rights reserved.   More from WordNet


Microeconomics : Wikipedia [Webmaster's Choice]

Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.

Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services. Microeconomics has been called the bottom-up view of the economy, or how people deal with money, time, and resources.

Macroeconomics studies the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national economic policies relating to these issues and the effects of government actions (e.g., changing taxation levels) on them.

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Wikipedia information about Microeconomics. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Microeconomics" More from Wikipedia


Taxonomy of Microeconomics : from Wikipedia [Webmaster's Choice]
External Links

Fundamental concepts in microeconomics

Elasticity - Consumer surplus - Producer surplus - Aggregation of individual demand to total, or market, demand - Competition - Efficiency (economics)

Consumer theory

Preference - Indifference curve - Utility - Marginal utility - Income

Production and pricing theory

Production theory basics - X-efficiency - Factors of production - Production possibility frontier - Production function - Economies of scale - Economies of scope - Profit maximization - Price discrimination - Transfer pricing - Joint product pricing - Price points

Welfare economics

Welfare economics - Pareto efficiency - Kaldor-Hicks efficiency - Edgeworth box - Social welfare function - Income inequality metrics - Lorenz curve - Gini coefficient - Poverty level - Dead weight loss

Industrial organization

Market form - Perfect competition - Monopoly - Monopolistic competition - Oligopoly - Concentration ratio - Herfindahl index

Market failure

- Collective action - Information asymmetry - The Market for Lemons - Externality - Public good - Antitrust regulations (to prevent abuse of market power by monopolists) Social cost - Free goods - Taxes - Tragedy of the commons - Tragedy of the anticommons - Coase's Penguin.

Financial economics

Efficient markets theory - Financial economics - Finance - Risk

International trade

International trade - Terms of trade - Tariff - List of international trade topics


General equilibrium - Game theory - Institutional economics - Neoclassical economics - Austrian economics

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