Microeconomics is the branch of economics that studies and analyzes the market behavior of both individual businesses and consumers to help understand the decision-making process of businesses and families. Analyzes the relationships between buyers and sellers and at the same time studies the factors that influence the choices of both parties. Many people confuse macroeconomics with microeconomics, and the main difference is that macroeconomics focuses on the bigger picture. While macroeconomics focuses on the national economy as a whole and the basics of the business world, microeconomics focuses on exactly the opposite, that is, on supply and demand and how small businesses set the prices of different goods . The main building blocks that make up microeconomics include; Supply and demand, markets, elasticity, opportunity cost, marginal analysis and cost-benefit analysis. Supply and demand consists of two important laws, the law of supply and the law of demand. Investopedia.com defines the Law of Supply as if all other things remain equal, as the price of a good increases (decreases), the quantity of that good supplied will increase (decrease). The same site describes the Law of Demand as if, all other things being equal, as the price of a good or service increases (decreases), the quantity of that good demanded will decrease (increase). The law of supply and demand can be illustrated in a fairly simple graph. On the X-axis you have the quantity of a certain item such as milk, while on the Y-axis you may have the price of milk. The lower the price of milk, the greater the quantity demanded, while the higher the price of milk, the lower the quantity demanded. When you create such a graph, you give the piece of paper to a company to see where the equilibrium price is and how much it can charge to maximize demand and profit. Market elasticity is a way for producers and consumers to better understand the business world and know at what times of the year a product might show more elasticity than others. Opportunity costs, marginal analysis, and cost-benefit analysis are all key tools for deciding whether good business decisions are actually being made and the negatives do not outweigh the positives. Knowing how to use all of these tools is necessary for anyone entering the world of business, whether they run a small business like a shop that sells fresh dairy products or a company that sells mountain bikes. Everything is tied together by the principles of microeconomics and without them businesses would not thrive as much as they do today.