Explore BrainMass

Difference Between Microeconomics and Microeconomics

Can you assist in "What is the distinction between microeconomics and macroeconomics."

Solution Preview

Microeconomics deals with economic decisions made at the individual consumer level. A typical microeconomic decision might be a 12 oz beer at the bar sells for USD2.75 and a 16 oz beer sells for USD3.75, which makes the most sense? The USD2.75 one does at USD0.229 (2.75/12) an ounce VS USD0.234 for the 16 oz (3.75/16). Besides the 16 oz will become warmer quicker.

It also may involve choices between different products (substitutability) . For example, the same consumer is faced with the choice at the same bar of a 12 oz beer at USD2.75 and a 6 oz old vine California Zinfandel for USD4.00. The wine would ...

Solution Summary

The solution describes with examples the distinction between microeconomics and macroeconomics