What are some surprising applications of concepts from microeconomics?

The main applications concepts of macro-economic include:

• Analyzing markets. The study of microeconomics is used in determining the type of markets in different industries. The common ones include oligopoly and perfect competition. Basically, the markets are distinguished based on levels of competition, the number of buyers and sellers, and freedom of entry in the markets.
• Analyzing market mechanisms used in establishing markets prices. It through micro economic knowledge that people understand the various processes of determining the prices of different commodities in diverse markets. The mechanisms include the interaction of the forces of demand and supply. The government also regulates the markets of goods and services through various strategies such as price ceiling and price floors.
• Microeconomics is used in determining how to allocate scarce resources to achieve optimal satisfaction. In other words, micro economic knowledge is used in solving the problem of scarcity due to the existence of limited resources and unlimited wants.