Microeconomics looks at the decisions of individuals (consumers and producers) in the economy. At the heart of economics is scarcity and choices. Consumers, firms and the government must all make choices over scarce resources. For example, a consumer must choose how to allocate her scarce time, how long she should work and how much time she needs for leisure.
Microeconomics is concerned with questions such as “What happens to demand for good X if the price of a substitute good rises”?, “Does the government need to stop people smoking in public”? and “Are there too many firms in the market”?