Introduction to Microenomics

Good day everyone,

I have been thinking of a posting strategy or a strategy to keep me active on this platform, seeing I have little hive power which leads to low resource credit, so getting more hive power wouldn't be very easy unless I get exposure to my audience who loves my content, which I actually don't know how, but incase your one feel free to follow for more, read my bio to know my interest if they matches yours.
Now let's dive into what we have to do today, which is

MICROECONOMICS.

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As an accounting student in the university, we learn a lot of things which I have come to share my knowledge on microenomics, more like introduce it to you guys, it's more like a series I will be sharing with you guys, this is part 1, am sure if this post is for you, you will love to see part 2.
So what is MICROENOMICS ?

Microenomics in simple terms deals with the study of household and firms. In professional terms, microenomics is a branch of economics that studies the behavior of individual households and firms in the presence of scarce resources. To go deep in this, it simply means microenomics has to do with, is concerned with individual and firms behavior, which means it study how firms and individuals react to business situations in the presence of scarce resources or funds. It's sometimes called price theory.

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Importance of microenomics

1. It help us understand the workings of a capitalist economy

2. It helps in international trade

3. It helps us with great understanding of problems concerning taxation

4. It helps in making economic policies

5. It helps in using resources effectively.

   To go deeper into microenomics, we should understand the concepts of partial and general equilibrium analysis.

Quick hint
Market equilibrium can be defined as a situation in a market where supply of goods equates to demand for that same good in a prevailing price, it simply occurs because of interaction of economic agents in a market like demand and supply.

Partial equilibrium concept
Partial equilibrium concept studies buyers and sellers behavior in a particular market with considering other markets, going more, partial equilibrium market analysis, only take into consideration specific decision making units in a particular market without considering other markets.

General equilibrium concept
It basically study the same thing partial equilibrium concept studies but with a slight difference which is, it do take into consideration of other decision making units of other markets, this is more realistic seeing that it shows how all parts of economy are linked together, thereby a change in equilibrium in one market will affect the equilibrium condition in every other market.

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🎊Bonus heading🎊

Economic models
Economic models are what economist using in solving economic issues using analysis and prediction. Economic model can be simply said to be a representation of a real life economic situation, it helps make complex situation to be understood easily, it is an abstraction of reality that is used as a framework to deliberately understand relationships among economic variables.

In conclusion microenomics is the study of household and firms as I said earlier, the more we get deeper the more you get understanding of this branch if economics which will help you improve your personal budget, understand the principles organization use to sell their products and many more, you will learn more about demand and supply, thanks for reading my blog post expect more.