Microeconomics is a subset of economics that focuses on the actions of the individual participants in the economy, including individual consumers and businesses.

Microeconomics uses the supply-and-demand model. The supply and demand model measures how many goods and services producers are willing to produce and sell at different prices and how many consumers are willing to buy at those prices.

Macroeconomics studies the entire economy, including employment, GDP, and inflation. Microeconomics focuses on specific markets and market actors, including supply and demand for goods and services.

Macroeconomic studies focus on a country, region, or government. Microeconomic studies focus on specific industries or markets, like the auto market, oil and gas, or travel.

There are at least seven general principles of economics that are central to microeconomic analysis. Supply and demand. Opportunity cost. Law of diminishing marginal utility. Giffen goods. Veblen goods.

Microeconomics principles can be applied to understand common household or business budget decisions and financial situations.

Nobel Prize laureate and Norwegian economist Ragnar Frisch first discussed "micro-dynamic" and "macro-dynamic" economic analysis in 1933.

Microeconomics is important to investors when making decisions on where to put money. Macroeconomic factors such as rising interest rates or declining GDP can bring down the valuations of most stocks in the market.