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Microeconomics is a branch of economics that deals with decisions and preferences of the individuals as well as the firms. In the simple model, we consider the consumers who are the buyers of the produce goods and services and the firms which produce or supply the goods and services. Thus in a market the demand curve represents the quantity demanded at a given market price while the supply curve represents the quantity supplied at a given price. The intersection of the two curves gave the market equilibrium where quantity demanded and supply is equal.
The market can have two situations, which are of perfect competition and imperfect competition. When the government is added to the model, we study the effects of the government policies like taxes and subsidies on the market. Similarly, on introduction of the international market we consider effects of imports and exports on the market. Microeconomics is usually studied with graphs as a tool in hand to represent many theories. These graphs might be tricky for the students because they are tough to understand and students can even confuse the various results they represent.
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