Micro Economics

Economics is mainly divided into two as Micro Economics and Macro Economics. The term micro and macro is coined by the norwegian economist 'Ragnar Frisch'. Micro Economics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. It is also known as Price Theory. It is developed by Marshal, Ricardo and Pigou. Micro Economics is the study of individual units of an economy. Micro Economics focuses on personal or any individual who takes decisions on demand and supply. In order to get maximum profit, producers make articles in less expenditure and sale it in the market for maximum price. At the same time, these people try to expand their profit, and also try to increase their satisfaction and welfare. The supply and demand in different market of an economy becomes balanced only in balance stage so that the micro economics to become identitical with Macro Economics.

Example - Income/Expenditure/Employment of a Person.