Economics is the study of consumer behavior and producer behavior. It studies the actions of certain consumers and producers with respect to the market conditions that may vary. The basic study of economics depends on the demand and supply models that studies consumers and producers. Through the demand and supply models the consumers and producers have certain assumptions through which their study can be completed.
Economics studies either the behavior of the individuals or the society at large. The study of individual units is the study of microeconomics whereas the study of group behavior is the study of macroeconomics. The major difference between micro and macro economics is that microeconomics studies demand and supply curves, consumer and producer behavior whereas macroeconomics studies about national income, GDP of the nation etc.
The importance of the study of economics is that through economics we can study the individual preferences of people and conclude the conduct of market equilibrium through demand and supply models.
Economics studies either the behavior of the individuals or the society at large. The study of individual units is the study of microeconomics whereas the study of group behavior is the study of macroeconomics. The major difference between micro and macro economics is that microeconomics studies demand and supply curves, consumer and producer behavior whereas macroeconomics studies about national income, GDP of the nation etc.
The importance of the study of economics is that through economics we can study the individual preferences of people and conclude the conduct of market equilibrium through demand and supply models.
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