Question

Which theory is generally included under micro economics ?
a. Price Theory
b. Income Theory
c. Employment Theory
d. Trade Theory

Answer 1

Price theory is included under microeconomics, for which the option ‘a’ is the right answer.

This theory states that the amounts of supply and demand of a material need to be judged for determining the justified price of that thing.

This theory is intended to bring some balance between the demand of a material in the market and the financial ability of the customers to buy that material.

Hence, there is a definite relationship of this Theory of Price with the supply and demand of things in the market.