What is the main focus of microeconomics?

The main focus of microeconomics is on individual economic units and their interactions. This includes the study of how consumers make decisions about purchasing goods and services, how businesses determine prices and output levels, and how various factors affect the behavior of these individual agents. Microeconomics examines the principles guiding supply and demand, market equilibrium, and how prices are determined in specific markets.

Understanding these interactions is crucial for analyzing how resources are allocated within an economy and how decisions are made on a small scale, which ultimately contributes to larger economic outcomes.