Microeconomics is a branch ofeconomics that studies how individuals, households and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold. Microeconomics examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices; and how prices, in turn, determine the supply and demand of goods and services. Macroeconomics, on the other hand, involves the "sum total of economic acti… (More on Microeconomic)