Microeconomics

thumb|right|300px|Microeconomics analyzes the market mechanisms that enable buyers and sellers to establish [[relative prices among goods and services. Shown is a marketplace in Delhi.]]

thumb|Tangible medical goods stacked in a warehouse|alt=Cardboard boxes stacked in a warehouse

discipline of economy studying the effects of psychological, cognitive, emotional, cultural and social factors on decisions

responsiveness of one economic variable to a change in another (e.g. supply or demand as a function of changed price, cross-price, income, wealth, advertising, etc.), ranging from inelastic to elastic

monetary benefit that accrues to parties to an economic transaction

situation in which nothing can be improved without something else being hurt

Incentives are anything that persuade a person or organization to alter their behavior to produce a desired outcome. Incentives are widely studied in personnel economics, where researchers and human resource managers examine how firms use pay, career opportunities, performance evaluation, and other mechanisms to motivate employees and improve organizational outcomes. Higher incentives are often associated with greater levels of effort and higher levels of performance. In comparison, disincentives discourage certain actions.

branch of microeconomic theory that studies how information affects economics

cost to maintain a standard of living

part of mainstream economics

equation in economics

concept in economics

Microfoundations are an effort to understand macroeconomic phenomena in terms of individual agents' economic behavior and interactions. Research in microfoundations explores the link between macroeconomic and microeconomic principles in order to explore the aggregate relationships in macroeconomic models.

economy with one consumer, one producer and two goods

Motivation for businesses to maximize profits

concept in economics

difficulty of treating an empirical or theoretical aggregate as if it reacted like a less-aggregated measure

economics term; economically independent decision maker, such as a private household or a company

economics concept

economic measure of business efficiency