What is the main focus of microeconomics?

The main focus of microeconomics is on individual markets and the behaviors of consumers and firms within those markets. It delves into how decisions are made by various economic agents, including households and businesses, and how these decisions interact to determine the supply and demand for goods and services. Microeconomics examines factors such as pricing mechanisms, competition, and consumer preferences, which shape market dynamics.

By analyzing individual market transactions and the impact of policies on specific sectors, microeconomics provides valuable insights into how local economies function and how resources are allocated. In contrast to broader economic frameworks that consider national or global trends, microeconomics zooms in on the intricacies of specific markets and players, making it essential for understanding everyday economic interactions.