Micro economic analysis tracks and predicts the buying behavior of individuals and companies. Its primary concerns are how the buyers ...
Micro economic analysis tracks and predicts the buying behavior of individuals and companies. Its primary concerns are how the buyers and sellers interact. In addition, it considers the micro economic factors, which influence the aforementioned interaction. From these behaviors, micro economic analysis endeavors to spot patterns that could predict future economic conditions. While not perfect, this analysis can help you plan for future projects and predict future revenues.
Supply and demandThe law of supply and demand is one of the most fundamental concepts in micro economic analysis. Demand is how much of a product or service consumers want to purchase and supply represents how many units a company or individual can provide to meet that demand.
Perfect competitionPerfect competition is the term in micro economic analysis that assumes that price competition is the only form of competition possible. Furthermore, it's an idealized state in which there must be free entry into the market, sufficient knowledge, a homogenous product or service and many buyers and sellers.