Definition of Microeconomics Microeconomics gives focus to the small or micro sections of the economy. Further, this branch of economics studied the individual’s (Households, industry, firm, etc.) economic problems and respective decision-making process that how to satisfy their unlimited wants by using the scarce or limited number of resources.  To better understand the concept of microeconomics we can define it as the study of fulfilling the unlimited wants or desires or maximizing the gain or benefit of an individual, individual family, individual company, individual industry, and so forth, by using scarce resources. Microeconomic theories study the individuals and their behavior towards attainting maximum gain in an economy but do not study the economy as a whole. Microeconomic theories study issues like consumption,

So far we have examined the inverse relationship/association between demand and price of a product. The law of demand stated that with the increase in the price of a particular product would reduce the demand for that product and vice versa. In simple words, exceptions to the law of demand refer to conditions where the law of demand is not applicable. In case of exceptions, the demand curve shows an upward slope and referred to as the exceptional demand curve. However, there are a few exceptions to the law of demand: with lower prices, demand also increases and decreases with rising prices. This situation is paradoxical and is considered an exception to the law of demand. In simple terms, the exception to

The assumptions of the law of demand are key pillars to realize or implement the law of demand in the market. There are many assumptions of the law of demand but the most important of them are hereunder which are discussed by most of economists when they talked about the law of demand. Before reading the assumptions of the law of demand it is recommended that you should understand the difference between demand and quantity demanded.  Assumptions of the Law of Demand 1. Income of the individual/consumer remains the same or constant The basic assumption of the law of demand is about income because it is directly related to price. In simple words, the income of the individual directly affects the quantity demanded that’s why it

It has been observed that many of the students do not understand the key concept of Demand vs. Quantity Demanded, which needs to be understood before studying other theories of economics. This article will reveal the hidden insights of Demand vs. Quantity Demanded. So let's get started Do you observe that the necessities of life like water, food, clothes, etc. are cheaper or inexpensive in the daily routine life while luxurious goods like gold, cars, etc. are expensive? The law which is working behind the scene is the law of demand. A law which tells us how much demand of a consumer or group of consumers is being affected by his/their income, price of a particular good, change in the prices