What is an example of microeconomics?

1 Answer
Mar 14, 2018

See below for an explanation:


The key realization here is that microeconomics, as the prefix says, deals with the economy on a narrow scale, for instance, the economic decision making of individual actors.

Here are some examples of microeconomics:

  • How a local business decides to allocate their funds
  • How a city decides to spend a government surplus
  • The housing market of a particular city/neighborhood
  • Production of a local business

In general, microeconomics is concerned with decision making that has low-level effects, that is, a city, where as microeconomics has high-level, large-scale effects, that effects nations.