Micro and macro economics

Micro economics

 Micro means a small part of a thing. micro economics thus deals with a small part of the national economy. It studies the economic actions and behaviour of individual units such as an individual consumer, individual producer or a firm etc.

Macro economics

Macro economics is  the branch of economics which analyses the entire economy. It deals with the total employment, national income, total consumption, total savings, general price level interest rates , inflation, trade cycles, business fluctuations etc. thus, macro economics is the study of aggregates.

Law of Demand

Introduction 

The law of demand was introduced by prof. Alfred Marshall in his book ,'principles of economics' which was published in 1890. The law explains the functional relationship between price and quantity demanded.

  

Statement of the law

According to prof. Alfred Marshall , " Other thing being constant , higher the price of a commodity , smaller is the  quantity demanded and lower  the price of  a commodity ,  larger is the quantity demanded "

  

Demand curve