Microeconomics is also known as price theory because:
A)everything has a price.
B)prices have important effects on individual and firm decisions.
C)prices are the only determinant of economic outcomes.
D)prices change constantly.

Question

Quizplus · Accepted Answer

Microeconomics is concerned with the behavior of individual agents, such as consumers and firms, and how they interact in markets. Prices play a crucial role in these interactions and are a key determinant of individual and firm decisions. While prices are important, they are not the only determinant of economic outcomes, so option C is incorrect. Option A is also not entirely accurate, as not everything has a price (such as public goods). Option D is not entirely relevant, as prices do not necessarily change constantly in all contexts.

Microeconomics Is Also Known as Price Theory Because