Microeconomics: Conclusion
AAA
  1. Microeconomics: Introduction
  2. Microeconomics: A Brief History
  3. Microeconomics: Assumptions and Utility
  4. Microeconomics: Factors Of Consumer Decision-Making
  5. Microeconomics: Factors Of Business Decision-Making
  6. Microeconomics: Making Economic Decisions - Starting A Business
  7. Microeconomics: Microeconomics in Action
  8. Microeconomics: Conclusion

Microeconomics: Conclusion

by Marc Davis

The study of microeconomics reveals how both consumers and businesses make financial decisions. Although a variety of impulses and imperatives drive these decisions, a principal determinant for the consumer is price, and for business the supply-demand factor as it relates to pricing and output.

There are also other elements that influence financial decision making, some simple, some complex, all of which were described in the preceding sections, and all of which ripple through the economy at large.

The great lesson of microeconomics is how individual decision making can be described in certain mathematical formulae, may be predicted with reasonable accuracy, and how each of these individual choices, both consumer and business, when multiplied many million-fold create the economic conditions in which we live.

  1. Microeconomics: Introduction
  2. Microeconomics: A Brief History
  3. Microeconomics: Assumptions and Utility
  4. Microeconomics: Factors Of Consumer Decision-Making
  5. Microeconomics: Factors Of Business Decision-Making
  6. Microeconomics: Making Economic Decisions - Starting A Business
  7. Microeconomics: Microeconomics in Action
  8. Microeconomics: Conclusion
RELATED TERMS
  1. Factor Market

    A marketplace for the services of a factor of production.
  2. Marginal Rate of Technical Substitution

    The rate at which one factor has to be decreased in order to ...
  3. Absolute Advantage

    The ability of a country, individual, company or region to produce ...
  4. Marginal Propensity To Consume - MPC

    A component of Keynesian theory, MPC represents the proportion ...
  5. Giffen Good

    A good for which demand increases as the price increases, and ...
  6. Veblen Good

    Goods that are perceived to be exclusive as long as prices remain ...
  1. What are some examples of positive correlation in economics?

    Learn the most common examples of positive correlation in microeconomics and microeconomics, including demand and price, ...
  2. What is the concept of utility in microeconomics?

    Read about the concept of utility in microeconomics, and why economists disagree about the usefulness of cardinal utility ...
  3. Which factors have the most influence on the law of demand?

    Find out what factors most influence the level of demand for a good or service, and see why demand is based on individual ...
  4. What math skills do I need to study microeconomics?

    Find out how and why mathematics are used in microeconomics, what its limitations are and the kinds of math skills that economics ...

You May Also Like

Related Tutorials
  1. Economics

    Economics Basics

Trading Center