Explain Micro economics is known as income theory?

Explanation  [Micro economics is known as Price theory]: The subject matter of micro economics includes the theory of product and factor pricing.  The theory of product pricing explains how the prices of different commodities such as cloth, wheat, rice, sugar, etc. are determined. The theory of […]

Why Micro economics studies behaviour of individual economic unit?

Reasons: The word ‘Micro Economics’ has been derived from the Greek word ‘mikros’ which means ‘small’ Micro economics splits or divides the whole economy into small individual units and then studies each unit separately in detail thereby using slicing method. […]

Give reasons or explain: Price theory is useful to businessmen.

Reason:  Micro economics (Price theory) analyses the patterns of supply and demand so as to determine the price and output in the individual markets. The theories of product pricing and factor pricing help an entrepreneur in various ways. The price […]