Question

Which of the following lies primarily within the realm of microeconomics? Question 30 options: ​an empirical analysis of the relationship between the growth of the money supply and the rate of inflation ​an economic model forecasting the impact of a tax increase on consumer spending and national output ​a study of supply and demand conditions in the market for orange juice ​a model forecasting the impact of a change in interest rates on the level of investment in the economy

Answer 1

A study of supply and demand conditions in the market for orange juice  lies primarily within the realm of microeconomics.

Explanation:

Micro economics is the field of study that deals with the choices that are made by individuals. It deals with study of how the decisions are made by individuals, household and companies regarding the utilization of resources. It always deals with the markets that are associated with the good and services and also with the economic issues associated with individuals.

Adam Smith is the father of micro economics. In the examples given, A study of supply and demand conditions in the market for orange juice is an example of the micro economics. This is because, it deals with the supply and demand conditions in the market of the orange juice that are consumed by individuals.