Microeconomics is concerned with individual behaviour and its relationship with price formation and exchange in markets. This book studies the behaviour of rational agents such as consumers and producers–sellers or firms. The patterns and consequences of their behaviour in isolated markets are analysed with a view to explain price formation and exchange in different market structures. The book covers input markets as well as microeconomic theories of input employment and income distribution. The book begins by introducing the different definitions of economics and the method of economics to the reader, going on to investigate the logic of Microeconomic theory in detail.