What sort of research topics are dealt with in applied microeconomics, and how do they relate to microeconomic theory?

There are various topics related to applied microeconomics for research purpose

Health: The theory of consumer choice problem and income apply to the market of health care. The cost of maintaining hospitals and the demand for various Medicaid services affect the decisions of the hospitals operating businesses. The income of the individuals affects the choice of consumers for taking facilities of the hospitals as low-income earners cannot afford the high costs of hospitals.

Environmental Economics: This is the part of economics branch. It relates to environmental issues such as clean air and clean water and establishes relation between economy and environment. It shows the use of natural resources by the producers for different tasks such as electricity generation and thus, relates to the microeconomic theory by affecting the production and pricing decisions of the firm.

Behavioral Economics: It takes into consideration the psychological and emotional and cognitive factors in the process of decision making by the individuals and firms and thus, relates to the microeconomic theory by affecting the decision making of individuals or customers regarding public choice and utility maximization.