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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

That part of economics which deals with the individual firm or consumer. This is as opposed to macroeconomics which deals with the economy as a whole. Microeconomics considers the equilibrating effect of supply and demand in a free market. It looks at the elasticity of demand and supply for particular categories of products. It also considers the diminishing marginal utility of a product. It is based on the idea that consumers and businesses will behave in a rational manner.

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