A branch of economics that studies the behaviour of individual households and firms in making decisions on the allocation of limited resources.
In IB Economics Section 1 is Microeconomics and the main topics are
1.1 Competitive markets: demand and supply (some topics HL only)
1.2 Elasticity
1.3 Government intervention (some topics HL extension, plus one topic HL only)
1.4 Market failure (some topics HL only)
1.5 Theory of the firm and market structures (HL only)
Garibaldi Secondary School, Maple Ridge, British Columbia, Canada