A person, household, firm, or industry as an economy’s units in this specific science of economic behavior. Contrast to macroeconomics, the study of the aggregate economy. Primarily concerned with factors affecting individual economic choices, factor changes effect on the individual decision makers, how their choices are synchronized by markets, and how prices and demand project in individual markets. Theory of demand, theory of the firm, and production demand for labor and other factors are the main subjects covered under microeconomics.

More On This Topic

Link to This Definition
Did you find this definition of MICROECONOMICS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary