Show Summary Details

p. 11. What and why of microeconomicslocked

  • Avinash Dixit

Abstract

‘What and why of microeconomics’ explains that microeconomics studies how consumers choose what goods and services to buy, how producers make decisions to meet these demands, and how the two sides interact. Mostly the transactions work fairly smoothly, but occasionally things do go wrong. Sometimes failures are drastic, like the gasoline shortages in the 1970s and the housing bubble and its collapse in the 2000s, so a basic understanding of microeconomics is important. When and how do transactions go well? When and why do they fail? What can be done if they fail? Information and incentive mechanisms to coordinate transactions and how prices work are the main subject matter of microeconomics.

Access to the complete content on Very Short Introductions online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can't find the answer there, please contact us.