Question

Scope of microeconomic theory​

Answer 1

Answer:

Micro economics is the study human wants and needs in conditions of scarcity and surplus on an individual level. The theory of microeconomics is beneficial for people at individual level but it may be in the long run harmful at mass or macro level.

For example if people started making savings it might benefit them but if every one saves money so money is displaced from the macroeconomic system and it can cause adverse effects to macroeconomy.