Micro economics is the study of small part of component of the whole economy.

Micro economics is called the price theory. It’s explained its composition, or allocation of total production why more of something is produced than of others.

In Micro study about individual consumer behavior or individuals firm or what happens in any particular industry.

If it be an analysis of price, we study about the price of a particular producer or of a particular factor of production.

If it is demand we analysis demand of an individual or that of an industry.

Here we study the income of an individual.

It is both positive and normative science. It not only tells us how the economy operates but also how it should be operated to promote general welfare.

It can not give an idea of the functioning of the economy as a whole example. An individual industry may be flourishing whereas, the economy as a whole may be languishing.

It assumes full employment, which is rare phenomenon, at any state in the capitalist world. It is therefore, an unrealistic assumption.

Study of individual aspects of economy will lead us now here.