Microeconomics primarily deals with which aspect of the economy?

Microeconomics focuses specifically on the behaviors of individuals and firms in making decisions about the allocation of limited resources. It analyzes how these entities interact in specific markets, examining factors such as supply and demand, pricing, consumer preferences, and production costs. By studying these aspects, microeconomics provides insights into how individual market dynamics influence overall economic activity, contrasting with macroeconomics, which looks at broader national or global economic indicators. Understanding consumer choices and firm behaviors helps in comprehending market equilibrium and the efficiency of resource allocation, making this focus essential in analyzing economic outcomes at a granular level.