Which of the following is a "Micro economic variable"?
Answer & explanation
Correct answer: option 3
The "Microeconomic variable" among the options provided is: Individual demand
Microeconomics focuses on the behavior of individual agents, such as consumers, firms, and industries, and the determination of prices and quantities in specific markets. Individual demand is a microeconomic variable as it pertains to the behavior of individual consumers in relation to the quantity of a good or service they are willing and able to purchase at different prices.
Micro economics deals with the study of individuals, households and firms' behavior in decision making and allocation of resources, whereas, macro economics deals with economy as whole. It answers the questions which relate to unemployment, inflation, national income, aggregate demand and supply etc.