Microeconomics primarily studies:

Microeconomics focuses specifically on the behavior and decision-making processes of individual consumers and firms. It analyzes how these entities interact in markets, how they allocate resources, and how prices are determined through supply and demand. This branch of economics examines factors such as consumer preferences, production costs, competition, and the various market structures that can exist, such as monopolies or perfect competition.

Understanding microeconomic principles helps elucidate how individual choices impact the overall economy, but it does so by zooming in on specific markets and interactions rather than addressing the larger aggregates that macroeconomics does, such as national income or unemployment rates. This differentiated focus is what clearly positions microeconomics as a study of individual economic actors rather than broader economic trends or historical contexts.