This branch of Economics focuses on the actions of individuals and industries within the economy, buyer-seller interactions, how businesses respond to price variations and fluctuations and how this impacts demand – thereby analyzing the parts which make up the economy. Concepts such as appropriate production control through cost effectiveness and efficiency are well covered by this branch.
There are various applications of Economics. The economists describe and measure their observations with regards to economic parameters and concepts. They then propose an explanation for such observations and develop the various hypothesis and constructing models. Hypothesis testing is then done to understand if it should be accepted or rejected. If the model works well, the economists use it further to predict future buying behaviour.
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