Which field of economics focuses on individual consumers and households?

Microeconomics is the field of economics that specifically examines the behaviors and decisions of individual consumers and households. It analyzes how these entities allocate their limited resources in the face of constraints, such as income and prices, to maximize their utility or satisfaction. This area of study involves understanding how individual preferences and market dynamics influence demand for goods and services, pricing strategies, and consumption patterns.

By focusing on the smallest units within an economy, microeconomics provides insights into how personal choices relate to broader market trends and economic principles. This emphasis on individual agents differentiates it from macroeconomics, which looks at the economy as a whole, studying aggregate phenomena like national income, inflation, and unemployment rates, rather than the specific decisions of individuals or households.