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

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.


Related Articles
  1. Insights

    Macroeconomics

    Macroeconomics studies the performance of an economy as a whole. While microeconomics focuses on the decisions, spending and performance of individuals or single businesses, macroeconomics focuses ...
  2. Trading

    Does Your Personality Match Your Trading Methods?

    Investing has ways to successfully accommodate a variety of personalities. Learn how to align your trading with your traits.
  3. Tech

    Ripple Cryptocurrency Aims to Make Global Assets Liquid

    Ripple is both a cryptocurrency and a leading blockchain technology developer, and it may be poised to take over the financial world.
  4. Tech

    What is the Biggest Security Threat to Ripple Cryptocurrency?

    Some cryptocurrency experts believe Ripple, the third-largest player in the industry, faces some significant security threats.
Frequently Asked Questions
  1. How did the ABX index behave during the 2008 subprime mortgage crisis?

    Read about the disastrous performance of the various ABX indexes in the subprime mortgage crisis of 2008 during the middle ...
  2. How did moral hazard contribute to the 2008 financial crisis?

    Learn about moral hazard, how it can affect outcomes and how it contributed to the conditions that led to the 2008 financial ...
  3. Which mutual funds made money in 2008?

    Read about the only mutual fund that turned a profit in 2008. Learn about risk-averse investment strategies and the financial ...
  4. Were Collateralized Debt Obligations (CDO) Responsible for the 2008 Financial Crisis?

    Collateralized debt obligations are exotic financial instruments that can be difficult to understand, Learn the role they ...
Trading Center