Microeconomics is formed with two greek words i.e, small and economics. Microeconomics is an economic term that studies the behavior of individuals, households and firms' in decisions regarding the allocation of scarce resources. The study is applied in research of markets of good and services. It also serves to resolve issues regarding economic.

Microeconomics makes analyzing of market mechanism easier. The study of Microeconomics is quite contradictory with Macroeconomics. Global Issues of growth, inflation, and unemployment are not covered in microeconomics. It simply is associated to deal with the effects of economic policies i.e taxation level.