In microeconomics, little emphasis is given to how prices are established and why they change.
True or False?
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it is true?
False.
In microeconomics, a significant emphasis is given to understanding how prices are established and why they change. The study of how prices are determined is a fundamental aspect of microeconomics and is known as price theory or the theory of supply and demand. Understanding price formation is crucial for analyzing consumer behavior, producer decision-making, market equilibrium, and the allocation of resources.