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Microeconomics is an economics that analyzes how individuals and companies act.

"Micro" means a small unit.

I see a little more familiar than watching the scenery of the whole country.

  • Why people buy their products
  • Why companies increase their value
  • Why Popular Products Are Higher
  • Why is the price lower in the sale?
  • Why the stock price動くs in short term

Helps you to think about these questions.

The idea of microeconomics can be quite useful when looking at companies by investment. Demand, price competition, profit margin, monopoly, consumer requirements. All are related to corporate value.

What is Microeconomics?

Microeconomics is a study that analyzes the economic behavior of small units.

The following are the main targets:

  • Individual
  • Home
  • Company
  • Product Market
  • market Price
  • Consumer behavior

For example, why does a convenience store increase?

Why coffee prices rise?

Why can I sell my smartphone?

It is a microeconomics that thinks about such a familiar price and behavior.

Macroeconomics

Economics include microeconomics and macroeconomics.

It’s like this.

分野Search
MicroeconomicsIndividuals, companies, products, prices
MacroeconomicsNational economy, price, 、, interest rate

Micro is small unit.

Macro is a big unit.

Example of Micro

  • Why a company raises
  • Why consumers choose cheaper stores
  • New smartphone price
  • Stock Buyer and Seller
  • Price competition for food chains

Macro Examples

  • GDP
  • Inflation rate
  • Un rate
  • Tag
  • Japanese
  • Contact Us

Both investments are required.

See the spect and interest rates in macros. See the strength of companies and products in Micro. One way only, it is quite overlooked.

Demand and supply centered

The center of microeconomics is demand and supply.

Demand is the amount you want to buy.

Supply is the amount you want to sell.

The price動き in two balances:

ContactPrice Movement
More people want to buyEasy to climb
Less productsEasy to climb
InventoryEasy to down
More competitive productsEasy to down

Popular games, limited sneakers, hotel rates, air conditioning, stock price.

There are parts that can be explained by demand and supply.

Of course, the reality is more complex. Brands, advertisements, interest rates, exchange rates, regulations, and social responsibility.

However, as the first entrance, it is easy to see how much people want to sell.

Companies want to increase profits

Microeconomics believes that companies move in the direction of increasing profits.

The profit is quite important for the company.

Even if sales increase, business will be bitter if profit is not left.

The following are the things we think about:

  • How much does it cost?
  • How many stocks do you make?
  • How to absorb raw materials and labor costs
  • Even if the value is raised, the customer is not away
  • Is there a reason to sell higher than the competition?

This is directly connected to investment.

The market is not highly appreciated if the profit margin is decreasing in the price reduction competition even in companies with increased sales.

On the other hand, even if the value is raised, the company does not leave the customer and the profit rate is strong.

Consumers try to maximize satisfaction

In Microeconomics, consumers think they want to increase satisfaction in a limited budget.

It is difficult to say the maximum effect, but it is quite normal in everyday.

For example, when you choose lunch for 1,000 yen, people think of the following:

  • Is there a large amount?
  • Good taste
  • Can you eat early?
  • Health
  • Point
  • Close

Even with the same 1,000 yen, the product you choose depends on the person.

Some people focus on peace, others focus on time. Some people focus on brand and security.

This difference leads to company price strategy and product design.

but not always reasonable

In microeconomics, we may think about the assumption that people act reasonably.

However, the real humans do not move so much.

  • Limited weak
  • Contact Us
  • Buy too much on sale
  • Decision is delayed without losing
  • I want to buy around

Same as investment.

Sold scaryly by rampage. I want to buy it lately. Jump only with dividend yield.

This leads to the area of behavioral economics.

Learn the basics of microeconomics and see the real human レre in behavioral economics. It is easy to understand if you think so.

How to Help with Investment

Microeconomics can be used in corporate analysis.

The following points are:

視点See
Contact UsIs there a popularity of products and services?
PricingEven if the value is raised, the customer is not away
Competition EnvironmentNot too many
ProfitIs sales changed to profit?
SubstituteIs it easy to replace with other products?
Fixed costCan you withstand sales reduction?

For example, even in the same food and drink chain, there is a company with a large number of customers and a company that does not fall too much.

The latter has a price deter.

Investors see it.

Not only sales, but also profit margin and number of customers. Here is the idea of microeconomics.

How to use everyday

Microeconomics can be used for daily shopping.

For example, when you look at the sale product.

Think about why it is cheap.

  • Is there any stock?
  • When the season ends?
  • Increased competitive products
  • 型落ちなのか
  • Is there really no demand?

Considering this, it is difficult to jump to the comfort.

On the other hand, there is a high reason if the price is high, but the supply is low and the demand is strong.

It is a hotel fee, live ticket, popular home appliances etc. in the travel season.

There is a reason for price.

This is the entrance of Microeconomics.

Easy to misunderstand for beginners

misunderstandingIn fact
Learn to see individual and corporate behavior
No investmentDirectly connect to corporate analysis and stock supply and demand
The price is free of charge.Constraints in demand, supply and competition
You can always sell good productsInfluences in price, coするtion, conflict and distribution
Cheap products getInventory disposal and quality problems

In particular, I don’t think that the price is determined by the company.

Company price

However, if the consumer does not buy it, it will not be established. If the competition comes out cheaper, it also comes with a reduced pressure.

The price is determined by the company and the market.


Microeconomics is an economics that analyzes individual and corporate behavior.

The following points are:

  • MICRO VIEWS INDIVIDUAL, PERSONAL, INDUSTRIAL,
  • Macros View National Scenic and Price
  • Demand and supply move price Companies want to increase profits
  • Consumers try to increase satisfaction on a limited budget A strong influence on現実s and trends in reality
  • Helps you see price decisions, competitive environments, and margins in investments

First of all, think about this when you look at shopping and stock price.

“Who wants to buy?”

Who wants to sell?

"Why is this price established?"

Even if you think about this three, the microeconomics will be quite familiar.


This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.