Ans: Microeconomics approach proves to be very important in a variety of ways.Its significance or use can be explained with the help of the following points:
(1) Optimum allocation of resources: Primary concern of microeconomics is the optimum and efficient allocation of resources.This analysis provides useful guidance to the consumers, producers as well as the government.
(2) International trade: Microeconomics analyses the problems related to demand for and supply of the foreign currency and the determination of external value of currency.This study proves helpful in the international trading.
(3) Economic forecasting: Microeconomics principal like the law of demand, provide basis for demand forecasting,
sales forecasting, etc.
(4) Social welfare: Microeconomics analysis suggests how
to minimise and eliminate wastage of resources under different types of imperfect market.It also suggests
optimisation of the resources so as to fetch the maximum
social welfare.