What Does Microeconomic Mean?

By Jeremy Bowman – Updated Nov 11, 2025 at 8:20 PM EST

Key Points

Microeconomics explains how supply and demand determine prices; shifts in either affect pricing inversely.
Investors gain from understanding microeconomics, identifying monopolistic markets and inelastic product demands.
Apple's cohesive product ecosystem showcases limited substitutes, enhancing its market pricing power.

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A person selecting cleaning spray at a grocery store. — Image source: Getty Images

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Monopoly

A monopoly refers to a market scenario where one single person or company controls the entire market for a particular product or service.

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Microeconomics also involves the study of consumer behavior, including the influence of substitutes and complementary goods, producer behavior, and market structures such as perfect competition, monopoly, monopolistic competition, and oligopoly.

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One example of microeconomics

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.