What Does Microeconomic Mean?

By Jeremy Bowman – Updated Nov 18, 2024 at 11:39 AM

Key Points

Supply and demand dynamics dictate pricing; equilibrium is achieved when both balance.
Market structures affect competition, influencing company performance and investment potential.
Understanding microeconomics aids in making informed consumer and investment decisions.

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

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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.