Micro and macro economics play a huge role in businesses. Everything from demand in a particular market, to the decision making based on the entire economy. Without these two key elements, a company would have no professional structure. What is the difference between these two terms and why are they so important?

Microeconomic is the main study of economics in a market. It takes a close look on how consumers are using their money and to what extent they are willing to go to obtain these products. Many people every day of course buy the essential needs. Gas, food, water, and anything else an individual needs to get through their day. What are the consumers buying the most of in relates to brands? How much are they buying and how many people purchase these items and of course how much are they spending. In micro economics we take all this information into account. This is essential when a company is either releasing a new product or changing their prices. Usually the data we gather from current sales of your competition in a certain market will reflect your company as well. Competition is a widely familiar term in America. It is also a very repeated study between company’s. A normal business pays large attention to their competitors because it determines a normal grossing of sales. If you think about, every sale that goes to another company could have been a sale to a different business. They like to gather information about why the customer chose this company, and how it differentiates from them. Microeconomics also studies market failure, why a certain product doesn’t sale. Many elements can determine why a product doesn’t sell, price, quality, features, and what the customer likes. Testing these elements is a very good technique in finding that “happy medium” or equilibrium. This is when the customer is happy and the company is satisfied with