According to microeconomics, what is analyzed to understand consumer behavior?

In microeconomics, the interaction of supply and demand is fundamental to understanding consumer behavior. This interaction determines how consumers make choices based on their preferences and the prices of goods and services in the market. When consumers evaluate their options, they consider both the availability of products (supply) and their willingness to pay for them (demand).

When demand increases for a product, buyers are typically willing to pay higher prices, while an increase in supply can lead to lower prices. Analyzing these dynamics provides insights into how consumers respond to changes in price, income, and other factors, ultimately shaping their purchasing decisions. Thus, by examining the interplay of supply and demand, microeconomics allows us to understand the underlying motivations and behaviors of consumers in the marketplace.