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Question
Give reason or explain the following statement:
Micro economics is also known as price theory.
Solution 1
Yes, Microeconomics is also known as price theory.
Reason: Microeconomics is primarily concerned with price determination of goods and services as well as factors of production. Therefore, it is also known as price theory.
Solution 2
We know that in microeconomics we study the behaviour of individual economic units such as the consumer and the producer. The basic aim of such a study is to determine the prices (in the commodities and factor markets). It is for this reason that microeconomics is also known as the price theory.
RELATED QUESTIONS
Write whether the following statement is True or False:
Price theory is the base of micro economic analysis.
Fill in the blanks with appropriate alternatives given in the bracket.
If the price of the inferior goods falls, the demand for them will ________.
Do you agree with the following statement? Give reason.
Micro Economics is known as income theory.
Complete the correlation:
Macro Economics : ______ :: Micro Economics : Price theory.
Complete the correlation:
Macro economic theory : Income and employment : : Micro economics : ______
