Welcome to the Investors Trading Academy talking
glossary of financial terms and events.
Our word of the day is “Microeconomics”
Microeconomics is the study of how households
and firms make decisions and how they interact
in markets.
The field of economics is broken down into
two distinct areas of study: microeconomics
and macroeconomics.
Microeconomics looks at the smaller picture
and focuses more on basic theories of supply
and demand and how individual businesses decide
how much of something to produce and how much
to charge for it.
People who have any desire to start their
own business or who want to learn the rationale
behind the pricing of particular products
and services would be more interested in this
area.
