Why is microeconomics important?

Answer 1

Before giving the answer of this question think simultaneously that, "why people buy both Insurance and lottery ticket?"

In layman microeconomics is analysis of the decision made by individuals or groups. It is understood that, any decision which is taken by any individual or group is not to be reluctant. Most probably the individual is sceptical in nature, study found that sometimes the group will also be sceptical. For instance, doctors are sceptical to prescribe about the value of alternative medicine. Therefore these sceptical nature of individual create confusion in decision in his business that's why individual or group learn all strategy of microeconomics to maximize profit by firms and maximizing consumer utility.

NOTE:- It is certainly true that whole economy is made up of individuals consumers and business.

NOTE:- Microeconomics extend to such issue as how voters choose between political parties and how Government should set taxes.